The Redistributive Effect of an Import Tariff Is the Transfer

question 22

Multiple Choice

The redistributive effect of an import tariff is the transfer of income from the domestic

• A) producers to domestic buyers of the good.
• B) buyers to domestic producers of the good.
• C) buyers to the domestic government.
• D) government to the domestic buyers.

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Definitions:

Long-Term Debt

Borrowings and other financial obligations that are due for repayment beyond the next 12 months, usually including bonds, loans, and lease obligations.

Interest Expense

The cost incurred by an entity for borrowed funds, reflected as a charge against its income.

Goodwill Impairment

A decrease in the recorded value of goodwill, indicating it is worth less than its carrying amount on the balance sheet.