Which of the Following Is Best Described by the Term

question 44

Multiple Choice

Which of the following is best described by the term "preferential tariff"?

• A) The tariff applies only to luxury items.
• B) The tariff limits the number of products that can be imported from particular countries.
• C) Tax is placed on countertrades.
• D) Tariff advantages are given to one country over others.

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Definitions:

Optimal Consumption Rule

A principle in economics that determines the best combination of goods and services that maximizes the utility of a consumer given their budget constraints.

Marginal Utility

The additional satisfaction or benefit gained from consuming one more unit of a good or service.

Consumption Bundle

A combination of goods and services that a consumer chooses to consume at a given time.

Budget Constraint

The limit on the consumption patterns of an individual or household based on their income and the prices of goods and services.