If a Tariff Is Placed on a Good,domestic Producers of the Good

question 129

Multiple Choice

If a tariff is placed on a good,domestic producers of the good are _________,domestic consumers of the good are _________,and the government _________ tax revenue.

• A) better off;better off;gains
• B) better off;better off;loses
• C) better off;worse off;gains
• D) worse off;worse off;gains
• E) worse off;better off;gains

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Definitions:

Personal Income Taxes

These taxes are levied on individuals' income by governments, including wages, dividends, and interest earnings.

Federal Personal Income Tax

A tax levied by the federal government of the United States on the income of individuals, including wages, salaries, and investment incomes.

Marginal Tax Rate

The rate at which an additional dollar of income is taxed, showing the percentage of tax applied to your next dollar of taxable income.

Average Tax Rate

Total tax paid divided by total taxable income or some other base (such as total income) against which to compare the amount of tax paid. Expressed as a percentage.