A Tariff Is a Tax on ____ Goods That Is

question 158

Multiple Choice

A tariff is a tax on ____ goods that is designed to ____.

• A) exported; protect domestic industries
• B) exported; hurt foreign industries
• C) imported; made domestic consumers pay more
• D) imported; protect domestic industries
• E) domestic; discourage imports

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Definitions:

Prices

The sum of money anticipated, needed, or provided as payment for something.

Classical Dichotomy

The theoretical separation of nominal and real variables in the economy, suggesting that changes in the money supply only affect nominal variables and not real variables like output.

Monetary Neutrality

The economic theory suggesting that changes in the money supply only affect nominal variables and have no long-term effect on real variables such as output or employment.

Long-Run Aggregate-Supply Curve

The long-run aggregate-supply curve represents the total production of goods and services in an economy at different price levels, assuming all resources are fully utilized.