The Imposition of an Import Tariff by a Nation Results

question 12

Multiple Choice

The imposition of an import tariff by a nation results in:

• A)an increase in relative price of the nation's import commodity
• B)an increase in the nation's production of its importable commodity
• C)reduces the real return of the nation's abundant factor
• D)all of the above

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Definitions:

Government Policy

Refers to the actions or inaction of a government intended to influence or control economic, social, or political matters.

Adverse Events

Unintended and generally negative outcomes or occurrences associated with a particular process, treatment, or action.

Borrow And Lend

The process of obtaining funds (borrowing) from another party with the obligation to return the funds often with interest (lending).

Short Term Variations

Fluctuations that occur in economic variables over shorter timeframes, usually less than a year.