If a Country Imposes a Tariff on an Imported Good

question 51

Multiple Choice

If a country imposes a tariff on an imported good, the tariff _______ the price in the importing country and _______ the quantity of imports.

• A) raises; decreases
• B) raises; increases
• C) lowers; does not change
• D) raises; does not change

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Definitions:

Time Factor

An element affecting the valuation of financial instruments or transactions, often related to the duration until maturity or the timing of cash flows.

Calculating Interest

The process of determining the interest payment on a loan or investment based on the principal, rate, and time.

Trade Receivables

amounts owed to a business by its customers for goods or services sold on credit.

Accounts Receivable

Amounts owed to a business by its customers for goods or services delivered on credit, expected to be collected in cash.