The Effect of a Tariff or a Quota Is to

question 31

Multiple Choice

The effect of a tariff or a quota is to

• A)raise the price of a commodity in the exporting country above the price in an importing country.
• B)raise the price of a commodity in an importing country above the price in the exporting country.
• C)lower the price of the commodity in all countries.
• D)raise the price of the commodity in all countries.

---

Definitions:

Income

The total money received by an individual or household from various sources like wages, investments, and benefits, over a specific period.

Utility Function

A mathematical representation that describes how the total utility of a consumer depends on the consumption of various goods and services.

Budget Line

A visual depiction of every potential pair of two products a consumer is able to buy based on their earnings and the costs of these items.

Utility Function

A mathematical representation of how different quantities of goods or services translate into levels of happiness or satisfaction for an individual or society.