A Tariff Is Most Likely to _______ Prices and _______

question 166

Multiple Choice

A tariff is most likely to _______ prices and _______ consumption of the good or service being protected.

• A) lower; increase
• B) increase; decrease
• C) have no effect on; not change
• D) lower; lower

---

Definitions:

Obligation

A duty or responsibility to act or perform in a certain way, often legally binding, resulting from a contract, law, or moral responsibility.

Shareholders

Individuals or entities that own shares in a corporation, giving them rights to dividends and a say in company matters, typically through voting.

Liquidation

The process of bringing a business to an end and distributing its assets to claimants, often due to insolvency.

New Share Issues

The process by which a company issues additional shares to new or existing shareholders, often to raise capital for expansion.