When a tariff is imposed, a deadweight loss occurs because of:
a. a loss in producer surplus
b. a fall in the price of the imported good.
c. an increase in the supply of the good.
d. a loss in total surplus.
d
You might also like to view...
Jim Smith runs a company that sells encyclopedia sets for $200 each. When he employs 5 workers, they can sell 20 sets per week, while only 17 sets are sold when 4 workers are employed. If the wage of workers in this skill category is $500 per week, should the fifth worker be hired?
a. No, because the MRP of the fifth worker is less than $500 per week. b. No, because the MRP of the fifth worker is more than $500 per week. c. Yes, because the MRP of the fifth worker is less than $500 per week. d. Yes, because the MRP of the fifth worker is more than $500 per week.
The lowest of the federal or state minimum wage levels prevails in each state
a. True b. False Indicate whether the statement is true or false