A Tariff

question 121

Multiple Choice

A tariff

• A) is a tax imposed on imported goods.
• B) is a tax imposed on exported goods.
• C) encourages worldwide specialization according to the principle of comparative advantage.
• D) has no effect on prices paid by domestic consumers even though it increases the revenue collected by domestic producers.

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Definitions:

Percent

A part or other object per hundred, used in mathematics to describe how one quantity relates to another in terms of proportion or fraction.

Accurate

Definition: Precisely correct or exact in details.

Cent

The smallest denomination of currency in many countries, representing 1/100th of the basic unit of currency.

Significant Figures

The number of digits in a value that contribute to its accuracy, typically used in scientific measurements.