What Is a Tariff

question 48

Multiple Choice

What is a tariff?

• A) It is a tax levied by a government on goods being exported out of the country.
• B) It is a tax paid by individual states to the federal government for goods transferred across state lines.
• C) It is a tax imposed by a government on goods that are imported into the country.
• D) It is a limit on the amount of goods that can be imported into the country.
• E) It is a limit on the amount of goods that can be exported out of the country.

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Definitions:

Factory Rent

Expenses incurred for leasing a premises to use as a manufacturing or production facility.

Prime Costs

The combined direct costs of raw materials and labor that are directly attributable to the production of a product.

Conversion Costs

The sum of direct labor and overhead costs involved in converting raw materials into finished goods.

Electricity Costs

The expenses incurred for the consumption of electricity, often classified as a variable cost in production or operations.