If a Country Imposes a Tariff on an Imported Good,the

question 127

Multiple Choice

If a country imposes a tariff on an imported good,the tariff ________ the price in the importing country and ________ the quantity of imports.

• A)raises;increases
• B)raises;does not change
• C)lowers;does not change
• D)lowers;increases
• E)raises;decreases

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Definitions:

Solar Panels

Devices that convert sunlight into electricity, using photovoltaic cells.

Anchoring

A psychological tendency to overemphasize the importance of the first information encountered (referred to as the "anchor") when one is making choices.

Overpriced Warranties

Service contracts sold at a price significantly higher than the expected cost of repairs, often yielding high profit margins for sellers.

Behavioral Economics

A field of economics that studies how psychological, social, cognitive, and emotional factors affect economic decisions of individuals and institutions.