Comparing Developed and Developing Nations in Their Use of Tariffs,we

question 244

Multiple Choice

Comparing developed and developing nations in their use of tariffs,we see that

• A) the developing nations' governments get very little revenue from tariffs.
• B) both governments get large amounts of revenue from tariffs.
• C) many developing nations' governments get a large portion of their revenue from tariffs.
• D) developing nations almost never impose tariffs because they want their people to obtain goods and services at the lowest possible price.
• E) developed nations rely much more than developing nations on tariff revenue.

---

Definitions:

Trade-Off

The concept of giving up one benefit or advantage in order to gain another regarded as more favorable.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, reflecting the potential benefits one misses out on when choosing one option over another.

Bowed Outward

Describes a curve on a graph, typically a production possibility frontier, indicating increasing opportunity costs when shifting resources between two goods.

Opportunity Cost

The cost of choosing one option over another, typically the best alternative forgone as a result of making a decision.