A Country Can Impose a Tariff to Improve Its Own

question 108

Multiple Choice

A country can impose a tariff to improve its own terms of trade if it

• A)constitutes a large fraction of the world demand for some commodity that it imports.
• B)has a significant trade surplus.
• C)has a high level of industrial diversification.
• D)produces and exports a large fraction of the world's supply of some commodity.
• E)imports mostly primary products.

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Definitions:

Production Techniques

Methods and processes used in the transformation of inputs into outputs or goods and services.

New Approaches

Innovative or alternative methods and strategies introduced to address issues or improve existing processes.

Standard of Living

The measure of affluence, convenience, tangible assets, and basic needs present for a particular economic group or location.

Labor Productivity

A gauge of economic productivity that determines the output of goods and services for every hour worked.