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:

Implicit Memory

Memory that enhances task execution using prior experiences, without the individual consciously realizing those past experiences.

Iconic Memory

A form of sensory memory that temporarily holds visual images before they fade or are processed further.

Sensory Memory

The shortest-term element of memory, which retains impressions of sensory information after the original stimuli have ended.

Automatically Processed

Information that is processed in the mind effortlessly and without the need for conscious thought.