How Will Increases in the Following Items Affect Return on Investment

question 35

Multiple Choice

How will increases in the following items affect return on investment (ROI) ?
$\begin{array} { l c c } & \text { Increase in Expenses } & \text { Increase in Inventury } \\\end{array}$
A) $\begin{array} { l c c } & \text { Decrease ROI } &&&& \text { Decrease ROI } \\\end{array}$
B) $\begin{array} { l c c } & \text { Decrease ROI } &&&& \text { Increase ROI } \\\end{array}$
C) $\begin{array} { l c c } & \text { Increase ROI } &&&& \text { Decrease ROI } \\\end{array}$
D) $\begin{array} { l c c } & \text { Increase ROI } &&&& \text { Increase ROI } \\\end{array}$

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Definitions:

Government Revenue

Funds collected by the government from various sources, including taxes, fees, and charges, used to fund public services and provisions.

Tariff

A tariff is a tax or duty imposed by a government on goods imported or exported.

Domestic Quantity Demanded

The total amount of a good or service that consumers in a particular country want to buy at given prices.

Tariff

A tax imposed on imported goods and services, intended to increase the cost of imported items and protect domestic industries from foreign competition.