Tariffs _____ Prices to Consumers and _____ Revenue Flows to the Government

question 76

Multiple Choice

Tariffs _____ prices to consumers and _____ revenue flows to the government.

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

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Definitions:

Work Opportunity Act

Legislation aimed at increasing job opportunities and ensuring workforce development by providing funding and support for employment training and education programs.

Laffer Curve

An economic theory proposing there exists a tax rate at which government revenue is maximized, suggesting that both higher and lower tax rates can lead to decreased revenue.

Fiscal Policy

The use of government spending and tax policies to influence economic conditions, including economic growth, inflation, and unemployment.

Monetary Policy

A strategy by which a central bank controls the supply of money in an economy, often targeting interest rates to achieve economic stability or growth.