If a Nation Imposes a Tariff on an Imported Product

question 119

Multiple Choice

If a nation imposes a tariff on an imported product, then the nation will experience a(n)

• A) decrease in total supply and an increase in the price of the product.
• B) decrease in demand and a decrease in the price of the product.
• C) decrease in supply of, and an increase in demand for, the product.
• D) increase in supply of, and a decrease in demand for, the product.

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Definitions:

Financial Statements

Reports that summarize the financial performance and position of a business, including balance sheet, income statement, and cash flow statement.

End-Of-Period Spreadsheet

A financial document used to gather and adjust account information from the ledger in order to prepare financial statements at the end of an accounting period.

Capital Balance

The amount of money that owners have invested in a company, not including any profits or losses.

Natural Business Year

A fiscal year that ends when a company's sales are at their lowest point in their annual cycle.