If a Good Is Imported into (Small)country H from Country

question 34

Multiple Choice

If a good is imported into (small) country H from country F,then the imposition of a tariff In country H

• A)raises the price in country H and does not affect its price in country F.
• B)lowers the price of the good in both countries.
• C)raises the price of the good in both countries (the "Law of One Price").
• D)raises the price of the good in H and lowers it in F.
• E)lowers the price of the good in H and could raise it in F.

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Definitions:

Economic Growth

A rise in the output of goods and services in the economy, measured from one time period to another.

Consumer Goods

Items bought by the typical consumer for their own use, encompassing long-lasting items, perishable products, and various services.

Capital Goods

Physical assets that a company uses in the production process to manufacture products and services that consumers will later use.

Opportunity Cost

Giving up possible benefits from other solutions when a single solution is chosen.