Specific Tariffs Are

question 37

Multiple Choice

Specific tariffs are:

• A)levied as a proportion of the value of the imported good.
• B)levied as a fixed charge for each unit of a good imported.
• C)in the form of manufacturing or production requirements of goods.
• D)government payment to domestic producers.

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Definitions:

Kinked-Demand Model

A model in economic theory that suggests prices in an oligopoly market tend to become rigid or stable due to competitive reactions.

Marginal Revenue

The additional income generated from selling one more unit of a good or service.

Kinked-Demand Model

An economic model suggesting that prices in an oligopoly are stable because firms will match price decreases but not price increases due to a kink in the demand curve.