Which of the Following Correctly Identifies the Impact of Tariffs

question 46

Multiple Choice

Which of the following correctly identifies the impact of tariffs on the producers of import-competing products in the imposing country?

• A)They can price their products higher than the imported goods.
• B)They can expand their production and sales.
• C)They are forced to go out of business in the long run.
• D)They are forced to charge a price equal to the average cost of production.

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Definitions:

Anonymous

Describing someone or something that is unnamed or not identified by name, often used to maintain privacy or confidentiality.

Self-Aware

Having conscious knowledge of one's own character, feelings, motives, and desires.

Commons Dilemma

A situation in which individual users acting independently and rationally according to their own self-interest behave contrary to the best interests of a whole by depleting a common resource.

Optimal Way

The most desirable or effective method to achieve a specific goal or result.