Asked by
Jennifer Jacob
on Dec 12, 2024
Verified
Which of the following would be expected if the tariff on foreign-produced automobiles were increased?
A) The domestic price of automobiles would fall.
B) The supply of foreign automobiles to the domestic market would decline, causing auto prices to rise.
C) The number of unemployed workers in the domestic automobile industry would rise.
D) The demand for foreign-produced automobiles would increase, causing the price of automobiles to increase in other nations.
Foreign-Produced Automobiles
Cars and other types of vehicles that are manufactured outside of a country's borders and then imported for sale.
Domestic Price
The price of goods or services within a country's borders, exclusive of any tariffs, export fees, or import costs.
Tariff
A tax imposed on imported goods and services, aimed at making these goods costlier and protecting domestic industries.
- Understand the impact of government interventions like subsidies, tariffs, and quotas on global trade activities.
Verified Answer
TR
Learning Objectives
- Understand the impact of government interventions like subsidies, tariffs, and quotas on global trade activities.
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