The Effects of a Tariff Are

question 15

Multiple Choice

The effects of a tariff are:

• A) reduced quantity supplied overall, reduced quantity supplied by domestic producers, and a lower price.
• B) identical to the effects of a quota, except that the price of the good is higher.
• C) reduced quantity supplied overall, increased quantity supplied by domestic producers, and a higher price.
• D) reduced quantity supplied overall, decreased quantity supplied by domestic producers, and a lower price.

---

Definitions:

Office Equipment

Assets like computers, desks, and chairs used in an office to carry out operations, not immediately consumed in the production process.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life.

Prepaid Expenses

Expenses paid in advance for goods or services to be received in the future.

Accounts Receivable

Amounts owed to a company by customers for goods or services provided on credit.