A Nation Can Gain from Imposing a Tariff on Imports

question 61

Multiple Choice

A nation can gain from imposing a tariff on imports if it forces exporting countries

• A)to raise their prices to pay the tariff.
• B)to lower their prices to avoid stocks of unsold goods.
• C)to produce at diseconomies of scale.
• D)to accept some imports from the tariff-imposing nation.

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Definitions:

Effortful Processing

A type of information processing that requires attention and conscious effort in order to encode or remember information.

Mental Image

A representation of sensory information in the mind, which is not currently being perceived, such as visualizing an object, sound, or situation.

Street Corner

Literally, the point at which two streets meet; often used to denote a specific location within an urban area.

Short-Term Memory

The capacity for holding a small amount of information in mind in an active, readily available state for a short period of time.