The Effects of a Tariff Are

question 121

Multiple Choice

The effects of a tariff are

• A) reduced quantity supplied overall, reduced quantity supplied by domestic producers, and a lower price.
• B) reduced quantity supplied overall, increased quantity supplied by domestic producers, and a higher price.
• C) reduced quantity supplied overall, decreased quantity supplied by domestic producers, and a lower price.
• D) identical to the effects of a quota, except that the price of the good is higher.

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Definitions:

Specific Performance

A legal remedy that requires a party to perform a specific act, often the fulfillment of a contract, rather than simply paying damages for failing to fulfill it.

Condition Precedent

A condition in a contract that must be met before a party's obligation becomes due.

Certified Cheque

A check for which the bank guarantees the availability of funds by verifying and setting aside the desired amount.

Deposit Monies

Funds placed into an account or given to another party as a security for the performance of a contract.