Suppose That Germany Levies a Tariff on Oranges, but None

question 111

Multiple Choice

Suppose that Germany levies a tariff on oranges, but none are grown in Germany.This tariff has

• A) only a protective effect.
• B) only a revenue effect.
• C) both a protective effect and revenue effect.
• D) no effects on trade.

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Definitions:

Share Earnings

Often referred to as earnings per share (EPS), it's the portion of a company's profit allocated to each outstanding share of common stock.

Retained Earnings

The portion of a company's profits that is kept or retained and not distributed to shareholders as dividends.

Accumulated Profit

The total amount of net income retained in a company over its entire history, not distributed as dividends.

Liquidation

The process of converting assets into cash or cash equivalents by selling them.