The government of Eduland is planning to impose a tariff on the ...

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The government of Eduland is planning to impose a tariff on the import of sports bikes. How is this policy likely to affect the domestic market for sports bikes in Eduland?
 
  What will be an ideal response?

Question 2

A surplus is defined as
 
  A) the excess of total expenditures over total revenues.
  B) government spending plus transfer payments.
  C) the sum of all past borrowing by the government.
  D) the excess of total revenues over total expenditures.

[vickybb89]

Answer to Question 1

If the government of Eduland imposes a tariff on the import of sports bikes, the price of imported sports bikes in Eduland will increase. As a result, the demand for domestically manufactured sports bikes will increase. Thus, the domestic market for sports bikes will become stronger.

Answer to Question 2

D

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Thanks for the timely response, appreciate it

[steff9894]

TYSM