Which of the Following Statements Concerning Tariffs Is NOT True

question 85

Multiple Choice

Which of the following statements concerning tariffs is NOT true?

• A)A tariff increases domestic production.
• B)A tariff creates revenue for the government.
• C)A tariff decreases international trade.
• D)A tariff leaves the price of imports unchanged.
• E)A tariff decreases domestic consumption.

Analyze the concept of absolute advantage in the production of goods.

Interpret production possibility frontiers and their implications for trade and specialization.

Evaluate the impact of specialization and trade on world production and consumption.

Calculate the opportunity cost of producing goods in different countries.

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Definitions:

Amazon

An American multinational technology company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence, one of the world's largest online retailers.

Fulfillment Centers

Large warehouses that process and ship orders for goods, playing a critical role in e-commerce and supply chain logistics.

Channel Captain

The dominant leader or company that exercises control over the coordination of all participants in a supply chain.

Intermediaries

Businesses or individuals that act as a link in the distribution process between producers and consumers, such as wholesalers or retailers.