Which of the Following Is the Best Example of a Tariff

question 110

Multiple Choice

Which of the following is the best example of a tariff?

• A)a subsidy from the U.S. government to domestic manufacturers of residential air conditioners to enable them to compete more effectively with foreign producers
• B)a limit on the quantity of residential air conditioners that can be imported from a foreign country
• C)a $150 fee imposed on all imported residential air conditioners
• D)a tax placed on all residential air conditioners sold in the domestic market to help offset the impact of emissions on the environment

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Definitions:

Swiss Chocolate

High-quality chocolate produced in Switzerland, known globally for its superior craftsmanship and ingredients.

Consumption Declines

A decrease in the amount of goods and services purchased and consumed by individuals or households.

Perfectly Elastic

Describes a situation in economic theory where the quantity demanded or supplied changes infinitely in response to any change in price.

Tax

An enforced economic levy or different levy applied to a taxpayer by a governmental agency intended to provide for government spending and multiple public outlays.