Tariffs

question 22

Multiple Choice

Tariffs

• A)reduce the price of foreign goods.
• B)reduce efficiency because a protective tariff encourages domestic firms to produce products at home.
• C)create efficient utilization of resources.
• D)are unambiguously pro-consumer and anti-producer.
• E)help domestic producers increase their efficiency and resist foreign competition

---

Definitions:

Description of Goods

A detailed account or specification of the physical and sometimes functional characteristics of goods in a contract for sale.

Implied Warranty

A warranty that the law derives by implication or inference from the nature of the transaction or the relative situation or circumstances of the parties.

Warranty of Merchantability

An implied guarantee that a product will meet the standard quality and performance expectations for goods of its kind.

Garage Sale

An informal, often temporary sale of used goods by private individuals, typically held at the seller's residence.