If the Tariff on Computers Is Not Changed,but Domestic Computer

question 38

Multiple Choice

If the tariff on computers is not changed,but domestic computer producers shift from domestically produced semiconductors to imported components,then the effective rate of protection in the computer industry will

• A)decrease
• B)no longer apply.
• C)remain the same.
• D)increase.
• E)depend on whether computers are PCs or "Supercomputers."

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Definitions:

Accounts Payable

The sum of money owed by a business to its vendors or lenders for products and services acquired on credit.

Top-Down Approach

An investment strategy that begins with analyzing macroeconomic factors before drilling down into the specifics of individual securities.

Operating Cash Flow

Cash generated from a company's normal business operations, indicating whether a company can maintain or grow its operations without new financing.

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners.