Assume That a Tariff Is Imposed on an Imported Product

question 145

Multiple Choice

Assume that a tariff is imposed on an imported product. The difference between the domestic price and the world price is captured by:

• A) The government
• B) Domestic consumers
• C) Domestic producers
• D) Foreign exporters

---

Definitions:

Prosperity Phase

A period during an economic cycle characterized by high economic growth, employment, and consumer spending.

Recession Phase

An interval of economic downturn where commercial and manufacturing operations decrease, commonly indicated by two successive quarters of falling GDP.

Disinflation

A slowdown in the rate of increase of the general price level of goods and services in a nation's gross domestic product over time.

Labor Force

The total number of people who are both employed and actively seeking employment.