1. Most efficient firms in a Melitz industry make greater profits under free trade is because they A. Operate under increasing marginal costs. B. Operate under FDI. C. Operate under low transport costs. D. Operate under increasing returns to scale. 2. A country imposing a tariff can benefit in terms of social welfare if A. The terms-of-trade benefit exceeds the sum of production and consumption distortion loss. B. The tariff revenue exceeds the sum of production and consumption distortion loss. C. The consumer surplus loss is less than the producer surplus gain. D. The terms-of-trade benefit exceeds the consumer surplus loss.
1. Most efficient firms in a Melitz industry make greater profits under free trade is because they A. Operate under increasing marginal costs. B. Operate under FDI. C. Operate under low transport costs. D. Operate under increasing returns to scale. 2. A country imposing a tariff can benefit in terms of social welfare if A. The terms-of-trade benefit exceeds the sum of production and consumption distortion loss. B. The tariff revenue exceeds the sum of production and consumption distortion loss. C. The consumer surplus loss is less than the producer surplus gain. D. The terms-of-trade benefit exceeds the consumer surplus loss.
Chapter1: Making Economics Decisions
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1. Most efficient firms in a Melitz industry make greater profits under free trade is because they
A. Operate under increasing marginal costs.
B. Operate under FDI.
C. Operate under low transport costs.
D. Operate under increasing returns to scale.
2. A country imposing a tariff can benefit in terms of social welfare if
A. The terms-of-trade benefit exceeds the sum of production and consumption distortion loss.
B. The tariff revenue exceeds the sum of production and consumption distortion loss.
C. The
D. The terms-of-trade benefit exceeds the consumer surplus loss.
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