If the US(A Large Country)imposes a Tariff on Its Imported Good,this Will

question 39

Multiple Choice

If the U.S.(a large country) imposes a tariff on its imported good,this will tend to

• A) improve the terms of trade of the United States.
• B) have no effect on terms of trade.
• C) improve the terms of trade of all countries.
• D) cause a deterioration of U.S. terms of trade.
• E) raise the world price of the good imported by the United States.

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Definitions:

Annual Interest

The amount of interest charged or earned over a year on borrowed capital or investment principal.

Present Value

The contemporary financial worth of a future sum or ongoing cash flows, evaluated at a designated rate of return.

Compounded Annually

A method of calculating interest where the interest earned each year is added to the principal, and the interest for the next year is calculated on the total amount.

Unamortized Discount

The portion of a bond discount that has not yet been charged to expense because the bond has not reached its maturity.