Of the Following,who Gains from a Tariff

question 230

Multiple Choice

Of the following,who gains from a tariff?

• A) the government of the importing country
• B) the government of the exporting country
• C) consumers in the importing country
• D) producers in the exporting country
• E) both the government of the exporting country and the government of the importing country

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Definitions:

Market Price

The price at which a good or service is bought and sold in a marketplace, determined by the forces of supply and demand.

Perfect Competitors

Firms operating in a market where there are many sellers and buyers, products are homogenous, and there is free entry and exit from the market.

Short Run

A period in economics during which at least one input (like factory size) is fixed and cannot be changed, contrasting with the long run where all inputs can be varied.

Industry

is the aggregate of manufacturing or technically productive enterprises in a particular field, characterized by the goods or services they produce.