A Country Raises the Tariff on Imported Cheese in Order

question 92

Multiple Choice

A country raises the tariff on imported cheese in order to increase its price above the price of domestically produced cheese. This is an example of ______.

• A) an exchange control
• B) an import quota
• C) a protective tariff
• D) dumping

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Definitions:

Interest Rate

The percentage of an amount of money charged for its use per period of time.

Investment Projects

Initiatives requiring capital investment aimed at generating economic returns over time, such as infrastructure development, real estate, or new product development.

Capital Goods

Long-lasting goods that are used in the production of other goods and services, such as machinery, buildings, and equipment.

Loanable Funds

The money available for borrowing in the financial markets, comprising savings by households and businesses that can be loaned to others who seek to invest or spend more than their current income.