Import Tariffs

question 78

Multiple Choice

Import tariffs:

• A) reduce the price of foreign goods.
• B) create efficient utilization of resources.
• C) reduce the overall efficiency of the world economy.
• D) are unambiguously pro-consumer and anti-producer.

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Definitions:

Classical Region

In economic theory, a phase where the supply of labor is abundant and the wage rates are therefore determined by the cost of living, not by the demand for labor.

Aggregate Supply Curve

An economic curve illustrating the overall supply of goods and services by all businesses and the government at various overall price levels in a given period.

Maximum Output Level

refers to the highest amount of production a company can achieve with the current resources and technology.

Production Possibilities Frontier

A curve representing a hypothetical model of a two-product economy operating at full employment.