As a Result of a Tariff on Imports, Consumers in the Importing

question 140

Multiple Choice

As a result of a tariff on imports, consumers in the importing country

• A)purchase more domestically produced goods and fewer foreign goods, resulting in the consumption of fewer total goods than without the tariff
• B)purchase more domestically produced goods and fewer foreign goods, resulting in the consumption of more total goods than without the tariff
• C)purchase more domestically produced goods and more foreign goods, resulting in the consumption of fewer total goods than without the tariff
• D)purchase fewer domestically produced goods and fewer foreign goods, resulting in the consumption of more total goods than without the tariff
• E)cease importing any goods at all

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Definitions:

Debt Investments

Financial assets purchased with the expectation that the investment will generate interest income from the debtor and be repaid at a future date.

Stock Investments

Investments in the equity or stock of another company, intending to earn dividends or sell for profit.

Debt Investments

Financial assets representing money lent to an entity (corporate or governmental) that must be paid back with interest.

Historical Cost

The original monetary value of an asset, as recorded on the balance sheet, without adjustments for inflation or market changes.