The Effect of a Tariff or a Quota Is to

question 31

Multiple Choice

The effect of a tariff or a quota is to

• A)raise the price of a commodity in the exporting country above the price in an importing country.
• B)raise the price of a commodity in an importing country above the price in the exporting country.
• C)lower the price of the commodity in all countries.
• D)raise the price of the commodity in all countries.

---

Definitions:

Sales Low

Refers to a period or instance when the number of products or services sold falls below expectations or past performance, often signaling a need for marketing or strategy adjustment.

Profits Negative

A financial state where a business experiences a deficit, spending more money than it is earning from its operations.

Stagnation

A period of slow or no growth in an economy, market, or industry, often marked by a decline in productivity and innovation.

Product Life Cycle

A concept that describes the stages a product goes through from its introduction to the market until its decline and eventual withdrawal.