If a Country Imposes a Tariff on an Imported Good

question 180

Multiple Choice

If a country imposes a tariff on an imported good, the tariff ________ the price in the importing country and ________ the quantity of imports.

• A) raises; decreases
• B) raises; increases
• C) raises; does not change
• D) lowers; does not change

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Definitions:

Test Marketing

The practice of testing new products in a controlled, limited market prior to a full-scale launch.

Competitors

Entities that are in the same industry or market and compete against each other for customers, market share, or resources.

Full-Scale Production

The manufacturing of products at the maximum capacity or volume that a facility can sustain, typically after successful pilot production and testing stages.

Product Mix

The total range of products that a company produces or sells, encompassing variety, features, and quality.