Which One of the Following Would Best Describe a Protective

question 19

Multiple Choice

Which one of the following would best describe a protective tariff?

• A)an excise tax that is usually applied to products which are not produced domestically in order to raise revenues for government
• B)an excise tax that is designed to put foreign producers at a competitive disadvantage in selling in domestic markets
• C)a specification of the maximum amount of a product that may be imported in any period of time which is often used to protect domestic producers of a product
• D)such activities as restricting the issuance of licenses for imported products or setting unreasonable standards for quality or safety in order to restrict imports and protect domestic markets

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Definitions:

Supply Curve

A graph showing the relationship between the price of a good and the quantity of the good that producers are willing to supply at that price.

Gasoline

A refined petroleum product used as fuel in internal combustion engines.

Market Size

The total potential sales volume or number of consumers available to a product or service within a given market.

Tax on Sellers

A financial charge imposed on sellers of goods or services, which can affect the supply and pricing of those goods or services.