Which of the following is the best example of a tariff?
a. a tax placed on all small cars sold in the domestic market
b. a limit imposed on the number of small cars that can be imported from a foreign country.
c. a subsidy from the U.S. government to domestic manufacturers of small cars so they can compete more effectively with foreign producers of small cars.
d. a $100-per-car fee imposed on all small cars imported.
d
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Surplus is:
A. a measure of the value that buyers and sellers get from participating in a market B. maximized for individuals whose reservation price equals the market price. C. negative for those who do not participate in a market. D. All of these are true.
Exports are goods and services that are produced:
A. domestically and consumed in other countries. B. in other countries and consumed domestically. C. and consumed in other countries. D. and consumers domestically.