Which of the Following Refers to the Consumption Effect of a Tariff

question 60

Multiple Choice

Which of the following refers to the consumption effect of a tariff on imported automobiles?

• A)The decline in the purchase of the imported product due to the increase in its price.
• B)The net increase in the availability of the domestic automobiles for the consumers owing to higher prices.
• C)The net increase in the government revenue by taxing the domestic consumers who buy the imported automobiles.
• D)The net increase in the consumption of imported automobiles by the domestic consumers.

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Definitions:

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A framework for analyzing and understanding firms' strategic positions and potential competitive advantage.

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The act of paying out or disbursing money, often related to the operational expenses of a business.

Interest Rate

The percent of principal charged by the lender for the use of its money or the return earned on an investment.