A Tax on Imported Goods Is Called a ___________________

question 3

Multiple Choice

A tax on imported goods is called a ___________________.

• A) tariff
• B) quota
• C) subsidy
• D) barrier

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Definitions:

Perfectly Competitive Industry

An economic model where many firms sell identical products, entry and exit are easy, and no single firm can influence the market price.

Market Price

The current price at which an asset or service can be bought or sold in the marketplace.

ATC

Average Total Cost, the total cost per unit of output when all fixed and variable costs are considered.

Perfectly Competitive Firm

A firm in a perfectly competitive market that cannot influence the market price and thus takes the price as given for its decision making.