When a Country Imposes a Per-Unit Tariff on an Imported

question 103

Multiple Choice

When a country imposes a per-unit tariff on an imported good or service,_____.

• A)the price that domestic consumers pay for the import falls
• B)the quantity of the good or service imported into the country declines
• C)the quantity of the good or service imported into the country increases
• D)the price at which any supplier can sell output in the world market decreases
• E)the quantity of the good or service demanded by the consumers increases

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Definitions:

Capital Investment

Funding provided to a business entity to purchase physical assets, like equipment or buildings, or to use in operations to stimulate growth.

Present Value Method

A financial calculation that determines the current worth of a future stream of cash flows, discounted at a specific rate.

Estimated Average

A calculation that aims to determine the central or typical value of a data set or projection.

Average Rate

A calculation representing the central or typical value in a set of rates, or a fixed rate determined as an average from several rates.