Figure 9-6 -Refer to Figure 9-6.When a Tariff Is Imposed in the Is

question 174

Multiple Choice

Figure 9-6

-Refer to Figure 9-6.When a tariff is imposed in the market,domestic producers

• A) gain by $100.
• B) gain by $200.
• C) gain by $300.
• D) lose by $100.

---

Definitions:

Disposable Income

Money that households can allocate towards savings and spending after income tax charges.

C + I

An economic term that represents the sum of consumer spending (C) and investment spending (I); key components of the Gross Domestic Product (GDP) formula.

Investment

The allocation of resources, such as capital or time, in the hope of generating future profits or benefits.

Capacity Utilization Rate

The percentage of a firm's total production capacity that is actually being used in production.