What Are Some of the Economic Effects of a Tariff

question 94

Multiple Choice

What are some of the economic effects of a tariff?

• A) Wealth is redistributed from wealthy nations to poor nations,and taxes fall.
• B) Unemployment and inflation rates both fall.
• C) A decrease in trade reduces the productivity of capital and labor.
• D) Trade remains the same in the long run,and GDP rises in the nation that enacts the tariff.

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Definitions:

Probability Assignment

The process of attributing a numerical likelihood to the occurrence of an event.

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Conforming to the law or to rules; authentic or genuine.

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Sales events or promotions that are not publicly advertised, often offered exclusively to certain customers or members.

Probability Assignment

The process of assigning a likelihood to a set of outcomes in an experiment or event.