The Most Likely Effects of Tariffs And/or Quotas Is to _______

question 150

Multiple Choice

The most likely effects of tariffs and/or quotas is to _______ prices and to _______ consumption of the protected goods in the importing country.

• A) raise; raise
• B) raise; lower
• C) lower; raise
• D) lower; lower

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Definitions:

Heating Oil

A low viscosity, liquid petroleum product used as a fuel oil for furnaces or boilers in buildings for heating purposes.

Supply for Heating Oil

The total availability of heating oil in the market, influenced by production levels, reserves, and importation.

Inferior Goods

Inferior goods are products whose demand decreases as consumer income rises, opposite to normal goods.

Demand

The amount of a product or service that buyers are prepared and capable of buying at different price levels over a specific time frame.