What is a TRUE statement concerning the imposition in the U.S.of a tariff on cheese?
A) It lowers the price of cheese domestically.
B) It raises the price of cheese internationally.
C) It raises revenue for the government.
D) It will always result in retaliation from abroad.
E) it leads to higher domestic demand for cheese.

Question

Quizplus · Accepted Answer

A tariff on cheese increases the price of imported cheese, which can lead to higher prices domestically, not lower. It does not directly affect international prices. The government collects revenue from the tariff, making option C correct. Retaliation is possible but not guaranteed, and higher prices typically reduce domestic demand, not increase it.

What Is a TRUE Statement Concerning the Imposition in the U.S.of