A Tariff Is

question 94

Multiple Choice

A tariff is

• A) a limit on the quantity of a good that can be imported into a country.
• B) a tax on imports.
• C) a government payment made to domestic firms to encourage exports.
• D) a payment made by the government to producers of the product.

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Definitions:

Life Expectancy

The average number of years an individual is expected to live, based on current mortality rates.

Production Costs

The total expenses incurred in the manufacturing of a product, including labor, materials, and overhead costs.

Short-run Economic Profits

Profits earned by a firm in the short run, where not all inputs can be varied and some fixed costs are still incurred.

Competitive Industries

Sectors of the economy where businesses actively compete with each other to offer goods or services to consumers, often characterized by low barriers to entry and a high level of innovation.