If a Nation Imposes a Tariff on an Imported Product

question 29

Multiple Choice

If a nation imposes a tariff on an imported product, then the nation will experience a(n) :

• A) Decrease in total supply and an increase in the price of the product
• B) Decrease in demand and a decrease in the price of the product
• C) Decrease in supply of, and an increase in demand for, the product
• D) Increase in supply of, and a decrease in demand for, the product

---

Definitions:

Partnership Assets

Assets owned by a partnership, representing the investment and contributions of the partners.

Net Income

The income a company retains following the deduction of all expenses and taxes from its total revenue.

Interest Allowances

Financial incentives or reductions in interest payments designed to encourage borrowing or to alleviate the burden of interest costs.

Salary Allowances

Fixed amounts paid to employees in addition to their regular salary to cover specific needs or expenses, such as travel or living expenses.