In the Importing Country, the Most Likely Effects of Tariffs

question 39

Multiple Choice

In the importing country, the most likely effects of tariffs and/or import quotas is to _______ prices and ________ consumption of the protected goods.

• A) raise; reduce
• B) raise; raise
• C) raise; not affect
• D) reduce; reduce

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Definitions:

Profit-Maximizes

Refers to the strategy or objective of an entity or individual aimed at achieving the highest possible profit from its operations, typically by managing costs, pricing, and output.

Profit-Maximizes

Strategies or actions by firms aimed at increasing their profits to the highest possible level.

Total Cost

The market value of the inputs a firm uses in production.

Marginal Cost

The supplementary cost that comes with the creation of one more unit of a product or service.