The Elimination of Import Restrictions Will

question 46

Multiple Choice

The elimination of import restrictions will

• A)Alter the mix of output from export industries toward domestic industries.
• B)Redistribute income from import-competing industries to export industries.
• C)Alter the mix of output from export industries to import-competing industries.
• D)Redistribute income from domestic to foreign producers.

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Definitions:

Variable Production Cost

Charges that fluctuate in line with production levels, such as direct labor and materials used.

Split-off

A point in the production process where multiple products are derived from a common input, and separate paths of further processing or sale are identified.

Avoidable Fixed Production Cost

Fixed costs that can be eliminated if a particular product, service, or segment is discontinued.

Surplus Material

Materials that exceed the requirements of the production process, often resulting in excess inventory.