6 Which of the following is FALSE A Consumer surplus increas

6. Which of the following is FALSE? A) Consumer surplus increases after a tariff is placed on imports B) Producer surplus increases after a tariff is imposed. C) Government revenue increases after a tariff is imposed. D) Deadweight losses result from tariffs. 7. One reason why producers have an incentive to organize in favor ofprotection is because A) pro?ucer gains are spread across so many firms that no one gets a large share of the benefits. B) producer gains are relatively concentrated. C) there is no real cost to the economy D) producer gains outweigh consumer losses 8. Television programming might be targeted for protection in a country using which of the following arguments? A) Infant industry B) National security C) Labor argument D) Cultural protection

Solution

Answer 6

Due to the imposition of tariff, there is a consumption effect and there will be a loss of consumer surplus, so, consumer surplus will decrease. Producer surplus increases as this is the difference between the price and the price firms are willing to supply at. Hence Government revenue increases and dead weight loss occurs as result of tariff.

So the false statement is option A.

Answer 7

The reason for producers having an incentive to organize in favor of protection is

B. producers gains are relatively concentrated.

Answer 8

Some times adult programs and many advertisement on television are not meant for children, it effects their mind as well as health.

Here, the answer will be- A. Infant industry.