The Effect of a Tariff Is

question 32

Multiple Choice

The effect of a tariff is

• A) an increase in consumers' surplus.
• B) a decrease in producers' surplus.
• C) an increase in tariff revenues for government.
• D) b and c
• E) all of the above

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Definitions:

Demand Uncertainty

This refers to the unpredictability of customer demand for products and services, affecting inventory, production, and distribution planning in supply chains.

Supplier's Demand

The quantity of materials or products required by a supplier from upstream suppliers to meet customer orders or production schedules.

Outsourcing

Outsourcing is the business practice of hiring a party outside a company to perform services or create goods that traditionally were performed in-house by the company's own employees.

Supply Chain Function

A specific activity or set of activities within a supply chain, such as procurement, production, distribution, or logistics, that adds value to products or services.