A Nation Can Gain from Imposing a Tariff on Imports

question 61

Multiple Choice

A nation can gain from imposing a tariff on imports if it forces exporting countries

• A)to raise their prices to pay the tariff.
• B)to lower their prices to avoid stocks of unsold goods.
• C)to produce at diseconomies of scale.
• D)to accept some imports from the tariff-imposing nation.

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold or consumed within one year or within the normal operating cycle of the business, whichever is longer.

Current Ratio

A financial ratio that indicates how well a company can cover its short-term liabilities with its present assets.

Current Liabilities

Short-term financial obligations that are due within one year or within the company's operating cycle, whichever is longer.

Contingent Liability

A potential financial obligation that may occur in the future depending on the outcome of a specific event.