Which of the Following Is NOT an Effect of an Import

question 180

Multiple Choice

Which of the following is NOT an effect of an import tariff?

• A) It increases producer surplus by raising the market price and allowing more production.
• B) It raises government revenue.
• C) It reduces consumer surplus by raising the market price.
• D) It improves efficiency in the economy overall because it saves high-paying jobs.

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Definitions:

Selling Price

the amount of money for which a good or service is sold to a customer, not necessarily reflecting the cost of production or provision.

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee, typically recognized as a portion of the investee’s net income or loss.

Voting Shares

Shares that give the shareholder the right to vote on matters of corporate policy making and on the election of the board of directors.

Equity Securities

Financial assets representing ownership interest in a company, such as stocks.