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

question 44

Multiple Choice

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

• A) paying a lower price and consuming more of the good than they otherwise would.
• B) paying a lower price and consuming less of the good than they otherwise would.
• C) paying a higher price and consuming less of the good than they otherwise would.
• D) paying a higher price and consuming more of the good than they otherwise would.

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Definitions:

Inventories

The complete list of items such as property, goods in stock, or the contents of a building.

Accounts Payable

The amounts due by a company to its suppliers or creditors for goods and services received but not yet paid for.

Net Cash Inflow

The difference between the cash received and cash expended in a given period, resulting in an increase in cash holdings.

Financing Activities

Cash flows related to actions that alter the equity or borrowings of an entity, reflecting how a business funds its operations and investments.