A Tariff Is Imposed on a Good

question 84

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; remain unchanged; remain unchanged
• C) increase; increase; increase
• D) increase; decrease; decrease

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Definitions:

Allocation of Resources

The process of distributing available resources among various competing needs or uses to achieve desired objectives.

Political Decision Making

The process by which governments and political groups determine policies, allocate resources, and make crucial societal choices.

Collective Decision Making

The process by which a group of individuals reach a decision collectively, often through discussion and consensus.

Economic Questions

Fundamental queries about how societies allocate scarce resources among competing uses, typically including what to produce, how to produce, and for whom to produce.