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:

CAPM

The Capital Asset Pricing Model, a theoretical framework used to determine the expected return on an investment based on its risk in comparison to the market.

Systematic Risk

A type of risk associated with the entire market or a particular market segment that remains unaffected by diversification efforts.

Risk Free Rate

The rate of return on an investment with no risk of financial loss, often represented by government bonds.

Beta

A calculation of the extent to which a stock's price swings in comparison with the overall market.