A Tariff Is Imposed on a Good

question 16

Multiple Choice

A tariff is imposed on a good. The tariff will _________quantity supplied, _________quantity demanded, and _________price in the home country.

• A) increase; decrease; decrease
• B) increase; remain unchanged; remain unchanged
• C) increase; increase; increase
• D) increase; decrease; increase

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Definitions:

Industry Averages

Statistical benchmarks that measure the average performance, such as profitability or growth, of companies in a specific industry.

Unprofitable Segment

A division or part of a business that does not generate profit and may drain resources from the more profitable segments.

Discontinued Operations

Parts of a company's core business or product lines that have been discontinued or sold.

Income Tax Expense

The amount of expense that a business or individual incurs due to the taxes on its taxable income.