Which of the Following Observations Regarding Economic Goods Is Incorrect?​

question 148

Multiple Choice

Which of the following observations regarding economic goods is incorrect?​

• A)​They are limited in supply.
• B)​They are desirable.
• C)​They are solely low-priced essential goods.
• D)​They are scarce goods created from scarce resources

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Definitions:

Revenue Tariff

A tariff designed to produce income for the federal government.

Import Quota

A government-imposed limit on the quantity of a specific type of good that can be imported into a country over a set period of time.

Protective Tariff

A tariff imposed by a country on imported goods to protect domestic industries from foreign competition by making imported goods more expensive.

Export Subsidy

A government policy to encourage export of goods and discourage sale within the domestic market through direct payments, tax relief for exporters, or subsidizing part of the cost.