If Protective Import-Restricting Tariffs Are Imposed by a Country, in the Majority

question 23

Multiple Choice

If protective import-restricting tariffs are imposed by a country, in the majority of cases that nation's producers end up

• A) receiving a higher price for the good than they otherwise would.
• B) receiving a lower price for the good than they otherwise would.
• C) producing less of the good than they otherwise would.
• D) receiving a lower profit for the domestic good than they otherwise would.

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Definitions:

Joke

A narrative or statement intended to provoke laughter or amusement.

Market Failure

A situation in which the allocation of goods and services by a market is not efficient, often leading to a net social welfare loss.

Imperfect Information

A situation where buyers, sellers, or both lack the necessary information to make informed decisions about the market.

Private Goods

Goods that are excludable and rivalrous, meaning their consumption by one individual prevents another from consuming them.