If Protective Import-Restricting Tariffs Are Imposed by a Country, in the Majority

question 23

Multiple Choice

If protective import-restricting tariffs are imposed by a country, in the majority of cases that nation's producers end up

• A) receiving a higher price for the good than they otherwise would.
• B) receiving a lower price for the good than they otherwise would.
• C) producing less of the good than they otherwise would.
• D) receiving a lower profit for the domestic good than they otherwise would.

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Definitions:

Equilibrium Quantity

The amount of products or services that are both provided and sought after at the balance price, where the supply meets the demand.

Rent Controls

Government-imposed rules that limit the amount landlords can charge for renting out their property, aiming to keep housing affordable.

Diagram

A simplified drawing showing the appearance, structure, or workings of something; often used in planning or explaining.

Shortage

A situation in which the demand for a good or service exceeds the supply available at a specific price.