When a Tariff Is Imposed, the Gap Between the Domestic

question 118

Multiple Choice

When a tariff is imposed, the gap between the domestic price and the world price is captured by

• A)foreign exporters.
• B)the domestic producers of the good.
• C)the government of the importing country.
• D)the domestic importers of the good.
• E)consumers in the importing country.

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Definitions:

Equivalent Units

A concept used in cost accounting to express the amount of work done by incomplete units in terms of fully completed units.

First-In, First-Out

An inventory valuation method that assumes the first items placed in inventory are the first sold.

Inventories

Assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process.

Cost Of Production Report

A financial report detailing the total cost and production quantities of a manufacturing department or process.