If an Import Tariff Is Reduced, the Domestic Quantity Demanded

question 117

Multiple Choice

If an import tariff is reduced, the domestic quantity demanded is ____ and the quantity supplied domestically is ____, ____ the quantity of goods imported.

• A)​greater; lower; reducing.
• B)​lower; greater, reducing.
• C)​greater; lower; increasing.
• D)​lower; greater; increasing.

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Definitions:

Laboratories of Democracy

A concept that states can experiment with policies and solutions, serving as prototypes for national legislation.

American System

An economic plan that played a significant role in American policy during the early 19th century, advocating for a high tariff to support internal improvements and protect domestic manufacturing.

New Federalism

A political philosophy that advocates for the redistribution of power from the federal government to state and local governments, emphasizing decentralization.

Dual Federalism

A political concept that views the federal government and the state governments as co-equal sovereign powers with separate and distinct areas of authority.