Under Which of the Following Situations Will a Tariff Imposed

question 25

Multiple Choice

Under which of the following situations will a tariff imposed by a country fail to reduce imports by as much as expected?

• A)The current tariff rate is less than the prohibitive tariff rate.
• B)The foreign export quantity supplied of the good imported by this country is more responsive to changes in the world price than was expected.
• C)The domestic supply of the import-competing products is more price-elastic than was expected.
• D)The domestic quantity demanded of the imported product is less responsive to price changes than was expected.

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Definitions:

External Consequences

Outcomes or repercussions of actions that affect parties outside the individual or entity responsible for the actions.

Organizational Creativity

The capacity of a company or organization to generate novel and useful ideas and solutions.

Harmony and Cohesion

The state of being unified or in agreement within a group, which fosters a positive and collaborative environment.

Climate for Creative Thinking

An environment or organizational culture that fosters innovation, open-mindedness, and the generation of new ideas.