A Nation Can Gain from Imposing a Tariff on Imports

question 61

Multiple Choice

A nation can gain from imposing a tariff on imports if it forces exporting countries

• A)to raise their prices to pay the tariff.
• B)to lower their prices to avoid stocks of unsold goods.
• C)to produce at diseconomies of scale.
• D)to accept some imports from the tariff-imposing nation.

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Definitions:

Regression Analysis

A statistical method used to model the relationship between a dependent variable and one or more independent variables.

Adjustment Technique

Methods or procedures used to modify data or values, bringing them in line with a specific standard or making them more comparable.

Mean-Variance Efficient Portfolio

An investment portfolio that aims for the highest expected return for a given level of risk or the lowest level of risk for a given expected return.

Single-Index Structure

A model used in finance that relates the returns of a stock to the returns of a market index through a single beta factor.