The Effect of a Tariff

question 319

Multiple Choice

The effect of a tariff

• A) is negligible since it applies to firms outside the U.S.
• B) can lead to economies of scale for firms inside the U.S.
• C) can lead to a monopoly advantage for firms inside the U.S. since they become the sole suppliers inside the U.S.
• D) will be more beneficial to large firms than to small firms.

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Definitions:

Causation

The action of causing something to happen or the relationship between cause and effect.

Correlation

A measure of the relationship between two variables, indicating how one may predict or relate to the other.

Cassation

The highest level of judicial appeal process where a court's decision can be overturned or annulled, often found in civil law jurisdictions.

Convenience Sample

A sampling method where participants are selected based on their easy accessibility and proximity to the researcher.