If the United States Imposes a Tariff on the Import

question 152

Multiple Choice

If the United States imposes a tariff on the import of Japanese cars instead of a quota, the price

• A)increase in Japanese cars goes into the revenue of U.S.automakers.
• B)increase in Japanese cars goes into the revenue of Japanese automakers.
• C)increase in Japanese cars goes into the revenue of the U.S.government.
• D)decrease in Japanese cars comes out of the revenue of U.S.automakers.
• E)decrease in Japanese cars comes out of the revenue of the U.S.government.

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Definitions:

Purchase

The act of buying goods or services.

Demand Curve

A graph showing the relationship between the quantity of a good demanded and its price, typically sloping downwards from left to right.

Price

The amount of money required to purchase a good or service, determined by factors such as supply and demand.

Quantity Demanded

The aggregate quantity of a product or service that buyers are prepared and capable of buying at a specific price.