Increasing a Tariff Will _______ the Domestic Quantity Consumed of the Good

question 61

Multiple Choice

Increasing a tariff will _______ the domestic quantity consumed of the good, while _______ the domestic production of the good.

• A) decrease; decreasing
• B) increase; decreasing
• C) increase; increasing
• D) decrease; increasing

Understand the components and presentation of financial statements under IFRS and GAAP.

Calculate and interpret earnings per share for companies with common and preferred stock.

Understand the concept and implications of retained earnings restrictions.

Recognize the accounting treatments and implications of stock dividends and cash dividends.

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Definitions:

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.

Production Possibilities Frontiers

is a curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, labor, etc.), assuming all inputs are used efficiently.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, starting in the United States, leading to high unemployment and financial instability.

Full Employment

A situation in which all available labor resources are being used in the most economically efficient way, typically characterized by the absence of involuntary unemployment.