An Import Duty Has the Effect of All of the Following

question 83

Multiple Choice

An import duty has the effect of all of the following except

• A) reducing the number of units exported.
• B) raising the price of the product in the importing nation.
• C) reducing the number of units imported.
• D) creating a trade restriction.
• E) protecting a domestic industry from competition.

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Definitions:

Premium

The amount paid for an insurance policy or the charge for accepting a higher risk in financial transactions.

Business Interruption Insurance

An insurance that provides coverage for revenue lost due to a temporary business closure caused by an insured disaster.

Policy-Holder

An individual or entity who owns an insurance policy and is entitled to coverage under that policy.

Cease Operation

The act of halting all business activities permanently or temporarily.