The Figure Below Shows the Demand (D) and Supply (S)

question 13

Multiple Choice

The figure below shows the demand (D) and supply (S) curves of a good produced domestically in an economy as well as traded in the international market.Figure 21.1
In the figure,
P₁: Price of the good in the international market.P₂: Price of the good in the domestic market after the imposition of tariff by the government.P₃: No-trade price of the good in the domestic market.
-Which of the following would result from a tariff?

• A)An increase in government budget deficit
• B)An increase in domestic production
• C)A greater volume of international trade
• D)Increased domestic consumption
• E)Decrease in prices of the imported goods

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Definitions:

Environmental Restrictions

Regulations and policies implemented to protect the natural environment from degradation due to industrial, agricultural, and commercial activities, aiming to preserve biodiversity and sustainability.

George W. Bush

The 43rd President of the United States, serving from 2001 to 2009, notable for his responses to the September 11 attacks and leading the nation into the wars in Afghanistan and Iraq.

War Powers Act

A federal law intended to check the U.S. president's power to commit the country to armed conflict without the consent of Congress, enacted in 1973.

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The formal consent given by the United States Congress to enact legislation, ratify treaties, or confirm appointments.