Which of the Following Statements Is True

question 121

Multiple Choice

Which of the following statements is true?

• A) If the United States imposes a tariff on Swiss chocolate imports, the price of chocolate in the Switzerland is likely to increase.
• B) If the United States imposes a quota on Swiss chocolate imports, the price of chocolate in the United States is likely to increase.
• C) If Switzerland imposes a "voluntary export restraint" on chocolate exports to the United States, the price of chocolate in the United States is likely to decrease.
• D) all of the above

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Definitions:

Increasing-Cost Industry

An industry in which production costs rise as firms enter the market, often leading to higher prices for consumers.

Positive Profits

Financial gains achieved when the total revenues exceed the total costs of a business.

Long-Run

In economics, the Long-Run is a period during which all input factors of production and costs are variable, allowing for the adjustment of all possible variables.

Short-Run Profits

Profits earned by a firm in a period where at least one factor of production is fixed.