A Tariff on a Product

question 71

Multiple Choice

A tariff on a product

• A)is a direct quantitative restriction on the amount of a good that can be imported.
• B)increases the domestic quantity supplied.
• C)increases domestic consumer surplus.
• D)All of the above are correct.

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Definitions:

Promisor

In a third-party beneficiary contract, the party to the contract who made the promise that benefits the third party.

Promisee

The person to whom a promise is made or who will benefit from the fulfillment of the promise in a contractual agreement.

Novation

The act of replacing one party or obligation in a contract with another, requiring the agreement of all parties involved.

Assignment

The transfer of rights, property, or obligations from one party to another, a common practice in contracts and financial transactions.