A Tariff on Imported Peanuts ________ the Quantity of Peanuts

question 65

Multiple Choice

A tariff on imported peanuts ________ the quantity of peanuts imported and ________ the domestic price of peanuts.

• A) decreases; decreases
• B) decreases; increases
• C) increases; lowers
• D) does not change; increases

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Definitions:

Commercial Paper

An unsecured, short-term debt instrument issued by a corporation, typically used for the financing of payroll, accounts payable, and inventories.

Firm's Securities

Financial instruments issued by a company, such as stocks or bonds, representing ownership or creditorship in the firm.

Preferred Dividends

Dividends that are allocated and paid to preferred shareholders before any dividends can be issued to common shareholders.

Voting Rights

The rights of shareholders to vote on company matters, typically exercised at annual meetings.