After a Tariff Is Imposed on a Good,the Price of the Good

question 23

Multiple Choice

After a tariff is imposed on a good,the price of the good

• A) does not change.
• B) falls.
• C) rises.
• D) rises only if the domestic demand for the good does not change.
• E) might rise, fall, or not change depending on whether the government did or did not simultaneously impose a quota.

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Definitions:

Direct Materials Budget

A financial plan that estimates the raw materials required for production and the costs associated with these materials for a specific period.

Production Budget

An estimate of the total cost of production, including direct material, labor, and overhead expenses, for a specific period.

Management's Plans

The strategic and operational plans developed by a company's management to achieve its goals and objectives.

Direct Labor Hours

The sum of working hours of employees directly participating in the production of goods or provision of services.