The use of trade barriers to enforce standards abroad raises all of the following concerns EXCEPT
A) the potential deadweight losses in consumption and production at home.
B) the potential for the use of trade barriers to erupt into a bigger trade war.
C) the difficulty of knowing whether some of the concerns are over standards or are veiled protectionism.
D) only small countries may be able to use trade barriers effectively.
D
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The above figure shows the market for gourmet ice cream. In effort to reduce obesity, government places a $2 tax per gallon on suppliers in this market, shifting the supply curve from S0 to S1. The total tax revenue is equal to
A) $400,000. B) $800,000. C) $500,000. D) $200,000. E) More information is needed to determine the total tax revenue.
The unemployment caused by the time that it takes to match workers and jobs is called:
A. frictional unemployment. B. the discouraged-worker effect. C. structural unemployment. D. wage rigidity.