When a Country Moves Away from a Free Trade Position

question 94

Multiple Choice

When a country moves away from a free trade position and imposes a tariff on imports,it causes

• A)a decrease in total surplus in the market.
• B)a decrease in producer surplus in the market.
• C)an increase in consumer surplus in the market.
• D)a decrease in revenue to the government.

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Definitions:

Investment Opportunity

A potential financial venture or asset that could generate income or appreciate in value over time.

Combined

Refers to the amalgamation or integration of two or more elements into a single unit or system.

Minimum Required Return

The lowest acceptable rate of return on an investment, often determined by the investor's cost of capital.

Consumer Products Division

A segment of a business that focuses on the development, marketing, and sale of products directly to consumers.