Tariffs Refer to

question 113

Multiple Choice

Tariffs refer to

• A)a reduction on or refusal to purchase goods from foreign nations with which a country has philosophical or ideological differences.
• B)government taxes on goods or services entering a country that primarily serve to raise prices on imports tariffs.
• C)a restriction placed on the amount of a product allowed to enter or leave a country.
• D)a minimum requirement for the purchase between two or more nations, of products or services.
• E)a refusal to purchase or exchange goods or services with another nation unless certain financial or ideological requirements have been satisfied.

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Definitions:

Comparative Advantage

Comparative advantage refers to the ability of a country to produce a certain good more efficiently and at a lower opportunity cost than another country.

Absolute Advantage

The capacity of a nation, person, or company to generate a greater quantity of a product or service than its rivals with an identical level of resources.

Trade

The exchange of goods, services, or both between parties, often involving the transfer of money.

Commodity

A basic good used in commerce that is interchangeable with other goods of the same type; commodities are often used as inputs in the production of other goods or services.