A Tariff Is

question 29

Multiple Choice

A tariff is

• A) the world price of a good or service.
• B) a licensing regulation that limits imports.
• C) price dumping by a firm engaging in international trade.
• D) the domestic price charged by an exporting firm.
• E) a tax on an imported good imposed by the importing country.

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Definitions:

Adverse Selection

Adverse selection refers to a situation where sellers have information that buyers do not, or vice versa, about some aspect of product quality.

Utility Function

A mathematical representation of how consumers rank different bundles of goods according to their level of satisfaction or utility.

Wealth

The presence of significant financial assets or tangible property that can be transformed into a medium suitable for trade.

Pain Of Losing

The emotional or psychological distress experienced after suffering a loss, often more intense than the joy of equivalent gains.