As a Result of a Tariff on an Imported Good

question 28

Multiple Choice

As a result of a tariff on an imported good,

• A) domestic producers are better off because they sell more goods at the same price.
• B) domestic producers are better off because they sell more goods at a higher price.
• C) domestic producers are better off because they sell the same quantity of goods at a higher price.
• D) domestic consumers are better off because there are more domestically produced goods available.
• E) domestic consumers are neither better off nor worse off because imports do not change.

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Definitions:

Ordinary Annuity

A series of equal payments made at regular intervals, with the interest compounding period being the same as the payment period.

Compounded Annually

Describes interest on an investment that is calculated annually and added to the principal sum, thus earning further interest in subsequent years.

RRSP

A Registered Retirement Savings Plan, a tax-deferred savings account for Canadians to invest money for their retirement.

Six-month Contributions

Regular payments or deposits made over a six-month period, often related to investments or savings plans.