The General Agreement on ___________ and Trade (GATT) was established to provide a forum in which nations could come together to negotiate reductions in tariffs and other barriers to trade.

Refer to above figure. What is the amount of efficiency loss resulting from imposition of the tariff?

What will be an ideal response?

If charity is a collective consumption good then government redistribution of resources can be justified on the basis that _____

a. government can act as a catalyst to encourage more private giving b. government helps deal with the prisoner's dilemma problem c. government overcomes the free riding problem d. government consumption is one-third of gross domestic product