What Is True of a State That Adopts a Tariff

question 39

Multiple Choice

What is true of a state that adopts a tariff in the scenario depicted in the figure?

• A)It will increase domestic consumption of the good.
• B)It will have no effect on domestic consumption of the good.
• C)It will decrease domestic production of the good.
• D)It will increase domestic production of the good.
• E)It will have no effect on domestic production of the good.

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Definitions:

Deviance

Behaviors or actions that violate social norms, including formally-enacted rules as well as informal understandings of acceptable conduct.

Crime

Activities that violate the laws of a society and are punishable by authorities.

Execution Costs

Expenses associated with carrying out or implementing a project, policy, procedure, or capital punishment, including planning, administration, and operational expenses.

Taxpayer

An individual or entity that is legally obligated to pay taxes to a federal, state, or local government.