Tariffs and Quotas Are Costly to Consumers Because

question 136

Multiple Choice

Tariffs and quotas are costly to consumers because

• A) the price of the imported good falls.
• B) the supply of the imported good increases.
• C) import competition increases for domestic goods.
• D) consumers have to switch to higher-priced domestic goods.

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Definitions:

Actual Results

The actual outcomes or figures achieved by a business, contrasting with forecasts or budgeted amounts.

Revenue Variance

The difference between the actual revenue for the period and how much the revenue should have been, given the actual level of activity. A favorable (unfavorable) revenue variance occurs because the revenue is higher (lower) than expected, given the actual level of activity for the period.

Sales Revenue

The income received from selling goods or services over a period of time.

Actual Level

The real, observed or measured value of a variable or condition, as opposed to an estimated or theoretical level.