When the Supply Curve Is Flat,a Tariff on Imported Goods

question 21

Multiple Choice

When the supply curve is flat,a tariff on imported goods

• A) always increases the welfare of Americans.
• B) always decreases the welfare of American..
• C) has no effect on the welfare of Americans.
• D) only affects the welfare of Americans if the goods are also made domestically .

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Definitions:

Risk Averse

The preference for certainty over uncertainty, with individuals or entities avoiding risks when making decisions.

Interest Rates

The cost of borrowing money, expressed as a percentage of the total amount loaned, or the return on invested money.

Efficient Markets Hypothesis

A theory that suggests financial markets are informationally efficient, meaning prices of traded assets reflect all available information at any given time.

Interest Rates

The cost of borrowing money or the return on investment for savings, often expressed as a percentage.