Question 31 31. This c Consider two different rates for a tariff (tax) be the LOWER rate? O The rate that eff of the good X Question 32 1 pts s were government were to set an import tariff on foreign cars so that the economy would include (choose one or more) production of portuni the lost gains from trade that co had been able to buy cars from cheaper world suppliers DB Question 33 33. If the govern were to set an import tariff on foreign cars so that the price of foreign cars rose and imports of those cars fell, domestic producers o cars and the taxing authority would gain by less than domestic consumers of cars would lose more than domestic consumers of cars would lose OA Question 34 1 pts 34. Which of these five arguments might help make the case AGAINST the infant industry argument for protection? (Choose one or more.) A Under competitive conditions entrepreneurs ma better use of the division of knowledge than a centralized government. Under competitive conditions entrepreneurs have a greater incentiv to choose profitable ventures than a government that receives revenue from In the real world a tariff may be in assure rather than economic logic. In the real world special interests work to keep a tariff in place after the infant industry has matured. home-produced goods in place of cheaper imports are greater than the prospective gains to the domestic producers who now sell more of the good. DC DA OF Question 35 1 pts 35. Which is NOT a protectionist export subsidy free trade C import tariff D trade embargo import quota OC OD Question 36 1 pts 36. This question tests your understanding of externalities. If the production of another unit of a good were to generate an additional can now read road signs and avoid car accidents involving other people). economic efficiency would in principle be improved by e tax on consumers. B providing the appropriate subsidy to consumers. C Neither A nor B since the question assumes that production, not consumption. generates additional positive externality. OC Question 37 1 pts 37. This question tests your understanding of externalities. discomforts other people), economic efficiency would in principle be improved by imposing the appre B providing the appropriate subsidy to producers. C Neither A nor B since the question assumes that consumption, not production. generates additional negative externality. Question 38 38. This question tests you The HIGHER are transaction costs, the more likely that externalities be eliminated through negotiation among interested parties. The LOWER are transaction costs, the more likely that externalities would be eliminated through negotiation among interested parties. The LESS clearly defined are property rights, the externalities would be eliminated through negotiation among interested V The MORE clearly defined are property rights, the more likely that externalities would be eliminated through negotiation among interested ption from the list below. ( Only I and IV are true. O Only II and I'll are true. O Only I and Ill are true. ( Only ll and IV are true. Question 39 1 pts 39. This question tests your understar Economic analysis suggests that we can int OD recognizing and enfor O A allowing merge OC promoting the emergence of markets DB making ownership rights explicit Question 40 40. Here are four statements about private, implies in all circumstances.) BE CAREFUL! Social cost must exceed private cost Social cost must arnal cost Private cost can er exceed social cost. exceed social cost. Choose the correct option from the list below. Only I and II are true. Only Ill and IV are true All four are true