A Tariff

question 27

Multiple Choice

A tariff

• A)makes domestic consumers better off.
• B)makes both domestic producers and consumers better off.
• C)makes everyone worse off.
• D)makes domestic producers better off.

---

Definitions:

Total Product Cost

This refers to the sum of all costs used to create a product, including direct labor, direct materials, and manufacturing overhead.

Per Unit

A measurement expressing costs, profits, or other economic variables on a per-unit basis.

Variable Costing

A costing method that includes only variable costs (direct materials, direct labor, and variable overhead) in the cost of goods sold, treating fixed costs as period costs.

Product Cost

The total expenses incurred to produce a product, including labor, materials, and overhead.