If a Country Imposes a Tariff on an Imported Good,the

question 127

Multiple Choice

If a country imposes a tariff on an imported good,the tariff ________ the price in the importing country and ________ the quantity of imports.

• A)raises;increases
• B)raises;does not change
• C)lowers;does not change
• D)lowers;increases
• E)raises;decreases

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Definitions:

Luxury Automobiles

High-end cars that offer superior performance, comfort, and amenities, often associated with status, exclusivity, and a high price point.

Quota

A fixed share or a specific limit on goods or services, often imposed by governments on imports or exports.

Importing

The process of bringing goods or services into a country from abroad for sale.

Domestically Produced

Referring to goods manufactured or services provided within a country’s borders, as opposed to imported from other countries.