A High Tariff on Imported Good X Might Reduce Domestic

question 140

Multiple Choice

A high tariff on imported good X might reduce domestic employment in industry Y if

• A) X is an input used domestically in producing Y.
• B) X and Y are substitute goods.
• C) X is an inferior good.
• D) Y is an inferior good.

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Definitions:

Consumers

Individuals or organizations that use or intend to use goods and services generated within the economy, fulfilling their needs and desires.

Utility

The benefits or customer value received by users of the product.

Retailing

All activities involved in selling, renting, and providing products and services to ultimate consumers for personal, family, or household use.

Marketing Activity

Any action or task carried out by a company to promote and sell its products or services, including advertising, promotions, and public relations.