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:

Individual Income Tax

A tax imposed by federal, state, and/or local governments on the income earned by individuals.

Earnings and Profits

A measure of a company's ability to generate income over its expenses, often used in corporate taxation.

Capital Gain

The profit from the sale of a capital asset, such as stocks, bonds, or real estate, exceeding the purchase price.

Stockholder

An individual or entity that owns shares of stock in a corporation, giving them a claim on part of the corporation's assets and earnings.