Of the Following,who Is Harmed by a Tariff

question 121

Multiple Choice

Of the following,who is harmed by a tariff?

• A) domestic buyers of the good or service
• B) the overall domestic economy
• C) the foreign exporter of the good or service
• D) domestic producers of the good or service
• E) Both answers A and B are correct.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company’s profits via dividends.

Authorized Shares

The maximum number of shares that a corporation is legally allowed to issue, as specified in its articles of incorporation.

Reacquired Shares

Shares that a company buys back from its shareholders, reducing the amount of outstanding stock on the market.

Par Common Stock

The nominal or face value assigned to common shares in the articles of incorporation, often having little relation to the market value.