Which of the Following Is True

question 87

Multiple Choice

Which of the following is true?

• A) An import quota generates government revenue.
• B) Tariffs on imports generate government revenue as long as the domestic price is larger than the world price plus the tariff.
• C) Tariffs on imports do not generate government revenue if the domestic price is larger than the world price plus the tariff.
• D) Tariffs on imports never generate government revenue.

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Definitions:

Net Operating Income

A measure of a company's profitability from its ordinary, core operations, excluding expenses and incomes from financing and investing activities.

Investment

The allocation of resources, such as capital or time, in the expectation of generating an income or profit.

Division Manager

An individual responsible for overseeing the operations, performance, and strategies of a specific division within a company.

Return on Investment

A financial metric used to evaluate the efficiency or profitability of an investment, expressed as a percentage of the investment's net profit to its cost.