A Tariff Is

question 54

Multiple Choice

A tariff is

• A) a subsidy on domestically produced goods.
• B) the difference between the world market price and the domestic price when a group of firms in an industry collude successfully.
• C) a tax on imported goods.
• D) a government imposed restriction on the quantity of a specific good that can be imported into the country and sold.

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Definitions:

Compounded Monthly

Interest is compounded monthly when it is calculated and added to the principal sum of an investment or loan each month.

Annual Interest Rate

The annual interest rate is the percentage increase in money that one earns or pays on an investment or loan over the span of one year.

Compounded Monthly

Refers to the process where interest is added to the principal balance of an investment or loan, and future interest calculations are made on the new total, on a monthly basis.

Annual Interest Rate

The percentage increase in money owed or invested over a year, accounting for the cost of borrowing or the gain on savings.