A Country Raises the Tariff on Imported Cheese in Order

question 29

Multiple Choice

A country raises the tariff on imported cheese in order to increase its price above the price of domestically produced cheese.This is an example of _____.

• A)an exchange control
• B)a quota
• C)a protective tariff
• D)dumping

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Definitions:

Surplus

An excess amount of something, often referring to goods, services, or resources that exceed what is needed or used.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to a situation where there is no tendency for the price to change unless external factors intervene.

Government Imposes

Measures or regulations put in place by the government that can impact various aspects of economic and social life.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a specific price over a given period of time.