What Effect Does a Tariff on a Particular Good Have

question 17

Multiple Choice

What effect does a tariff on a particular good have?

• A)It results in a higher total quantity sold.
• B)It redistributes income away from foreign producers toward domestic producers.
• C)It decreases the price of the good to domestic consumers.
• D)It increases the net-of-tariff price received by foreign producers.

---

Definitions:

Illegal Agreements

Contracts or arrangements that are prohibited by law and thus are not enforceable by the judicial system.

Noncompetition Clause

A contract provision that prohibits a party from engaging in similar business or trade in competition against another party.

Liability Waiver

A legal document in which a person agrees to relinquish the right to sue or claim against another party in case of injury or damage.

Illegal Agreement

A contract based on the premise or performance of an activity that violates the law, making it unenforceable.