The Reduction in the Price of the Import Commodity That

question 54

Multiple Choice

The reduction in the price of the import commodity that results when a large nation imposes an import tariff is attributed to the ____________ and constitutes a __________ of welfare for the nation.

• A)consumption effect of the tariff,loss
• B)terms of trade effect of the tariff,loss
• C)protective effect,gain
• D)terms of trade effect,gain

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Definitions:

Money Market Securities

Short-term financial instruments, typically liquid and with high credit quality, traded in the money market involving assets like treasury bills, commercial paper, and certificates of deposit.

Collection Time

Refers to the average period it takes for a business to receive payments owed by its customers after a sale has been made.

Lockbox Fee

A charge imposed by banks for servicing and processing payments received in a lockbox, a service that accelerates the collection of receivables.

BAT Model

A framework for analyzing and understanding firms' strategic positions and potential competitive advantage.