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:

Molecule

A molecule is a group of two or more atoms bonded together, representing the smallest fundamental unit of a chemical compound that can take part in a chemical reaction.

Hydrogen

The lightest and most abundant chemical element in the universe, symbolized as H.

Methane

A simple alkane hydrocarbon with a molecular formula of CH4, known as the main component of natural gas.

Water Molecule

A water molecule consists of two hydrogen atoms bonded to one oxygen atom (H2O), fundamental for all known forms of life.