A Tariff on a Good When the World Price Is

question 9

Multiple Choice

A tariff on a good when the world price is lower than the domestic price leads to:

• A) tariff revenues that will be lower than under free trade.
• B) domestic imports that will be higher than under free trade.
• C) lower domestic consumption of the good than under free trade.
• D) lower domestic production of the good than under free trade.

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Definitions:

Attracting New Buyers

The strategies and practices employed by businesses to appeal to and engage individuals or entities that have not previously purchased their products or services.

Repeat Buyers

Consumers who make multiple purchases from the same brand or vendor, demonstrating brand loyalty or satisfaction with the product or service.

Industry Wide Markets

Markets that span across an entire industry, affecting all organizations within that industry.

Low-Cost

Describes products or services offered at a price lower than the market average to attract cost-sensitive consumers.