If a Good Is Imported into (Small) Country H from Country

question 26

Multiple Choice

If a good is imported into (small) country H from country F, then the imposition of a tariff In country H

• A) raises the price of the good in both countries (the "Law of One Price").
• B) raises the price in country H and does not affect its price in country F.
• C) lowers the price of the good in both countries.
• D) lowers the price of the good in H and could raise it in F.
• E) raises the price of the good in H and lowers it in F.

---

Definitions:

Payable

Short-term financial obligations or debts of a company, typically to suppliers, that are due to be paid within one year.

Cash Dividend

A payment made by a company out of its profits to shareholders, usually in the form of cash.

Dividends Payable

A liability on a company's balance sheet representing the amount of declared dividends that are owed to shareholders but not yet paid.

Retained Earnings

The portion of net income that is retained by the corporation rather than distributed to its owners as dividends.