Quotas Are a Greater Threat to Competition Than Tariffs Because

question 129

Multiple Choice

Quotas are a greater threat to competition than tariffs because

• A)Quotas allow imports but only at a higher price.
• B)Tariffs are voluntary and quotas are not.
• C)Quotas preclude additional imports at any price.
• D)Tariffs do not reduce the quantity sold and quotas do.

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Definitions:

Plantwide Predetermined Rate

A single overhead rate calculated by dividing total estimated overhead costs by an expected base for the entire plant.

Machine-Hours

A measure of production output or operation, indicating the total hours machines are running in the manufacturing process.

Markup

The surcharge applied to the original cost of items to compensate for overhead expenses and secure earnings.

Plantwide Predetermined Rate

A single overhead rate calculated using the total estimated overhead costs divided by an estimated allocation base for an entire factory or plant.