A Tariff on a Good When the World Price Is

question 9

Multiple Choice

A tariff on a good when the world price is lower than the domestic price leads to:

• A) tariff revenues that will be lower than under free trade.
• B) domestic imports that will be higher than under free trade.
• C) lower domestic consumption of the good than under free trade.
• D) lower domestic production of the good than under free trade.

---

Definitions:

Incontestability Clause

A provision in a life insurance policy that prevents the insurer from disputing the policy's validity after it has been in force for a certain period, typically two years, except under circumstances such as fraud.

State Laws

Laws that are enacted and enforced by individual U.S. states, as opposed to federal law.

Coverage

Coverage denotes the extent of protection provided under an insurance policy, detailing what losses are covered and to what extent.

Insurable Interest

A stake in the value of an entity or event for which an insurance policy is purchased to mitigate risk of loss.