In General, Tariffs Weaken

question 5

Multiple Choice

In general, tariffs weaken

• A) inflationary pressures.
• B) special interests' privileges.
• C) balance-of-payments positions.
• D) government control in economic matters.
• E) the number of reciprocal tariffs by other countries.

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Definitions:

Utilities Possibilities Frontier

A graph that shows the maximum satisfaction levels of two or more agents in an economy based on the allocation of resources.

Marginal Utility

The change in satisfaction or utility an individual gains from consuming an additional unit of a good or service.

Efficient

The quality of achieving maximum productivity with minimum wasted effort or expense.

Utility Functions

Mathematical representations that indicate the level of satisfaction or utility an individual receives from consuming different bundles of goods and services.