Which of the Following Policies Would Not Improve the Terms

question 5

Multiple Choice

Which of the following policies would not improve the terms of trade from the point of view of import-competing industries in the United States?

• A) Freer trade.
• B) "Buy American" campaigns.
• C) Placing tariffs on imports of foreign goods.
• D) Restricting imports of foreign goods.

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Definitions:

Materials Standards

Benchmarks or specifications set for the quality, quantity, and cost of materials used in production to achieve performance and efficiency goals.

Direct Materials Purchases Variance

This term refers to the difference between the actual cost of materials purchased and the expected (standard) cost of materials needed to manufacture the products during a specific period.

Materials Price Variance

The difference between the actual cost of materials and the expected (standard) cost.

Raw Material

The basic material from which a product is made, used in the initial stages of production.