If a Tariff Is Imposed by a Country That Is

question 74

Multiple Choice

If a tariff is imposed by a country that is large enough to have market power in global markets, the domestic consumer will face an autarkic price than the world price for the product, and this world price will be
By the tariff.

• A) higher; reduced
• B) higher; increased
• C) lower; increased
• D) lower; unaffected
• E) lower; reduced

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Definitions:

Environmental Law

A body of laws and regulations designed to protect the environment from harm caused by human activities.

Corporate Firm

A corporate firm is a legal entity recognized by law, created by individuals or shareholders, with the purpose of engaging in commercial activities, often characterized by limited liability, perpetual succession, and the ability to raise capital.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water.

Motives

Internal states that drive individuals to take actions towards achieving specific goals.