A Tariff Is Imposed on a Good

question 86

Multiple Choice

A tariff is imposed on a good. The tariff will _______ the domestic quantity supplied,_______ the domestic quantity demanded, and _______ price in the home country.

• A) increase; decrease; increase
• B) increase; increase; increase
• C) increase; decrease; decrease
• D) increase; not affect; not affect

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Definitions:

Liquid Investments

Assets that can be easily converted into cash with minimal loss in value, ensuring quick accessibility of funds when needed.

Administrative Reason

A justification or explanation based on the requirements or procedures of management or bureaucracy.

Emergency Needs

Immediate financial requirements that arise unexpectedly, requiring quick access to funds.

Lock Boxes

A cash management service offered by banks involving the collection of payments from a corporation's customers, aiming to reduce the time it takes for companies to receive payments.