By Itself, a Reduction in Import Tariffs (Taxes) Will

question 42

Multiple Choice

By itself, a reduction in import tariffs (taxes) will:

• A) reduce quantity demanded.
• B) enhance domestic competition.
• C) enhance the profits of domestic competitors.
• D) reduce import competition.

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Definitions:

Costs

The amount of money required for the production of goods or services, including materials, labor, and overheads.

PPACA

The Patient Protection and Affordable Care Act, a comprehensive health care reform law enacted in March 2010, aimed at expanding health insurance coverage in the United States.

Firms

Firms are business entities established to produce goods or provide services with the goal of earning profits in a market economy.