Tariffs and Quotas Are Costly to Consumers Because

question 136

Multiple Choice

Tariffs and quotas are costly to consumers because

• A) the price of the imported good falls.
• B) the supply of the imported good increases.
• C) import competition increases for domestic goods.
• D) consumers have to switch to higher-priced domestic goods.

---

Definitions:

Maturities

The set dates at which a bond or other financial instrument's principal amount is due to be paid back to the investor.

LEAPS

Long-Term Equity Anticipation Securities, which are options contracts with expiration dates longer than one year, offering longer-term investment strategies.

Initial Maturities

The original duration until the expiration or due date of a financial instrument, such as a bond or loan, when first issued.

Exchange-Traded Options

Financial derivatives that give the holder the right, but not the obligation, to buy or sell a specific amount of a security at a set price on or before a certain date.