If the USImposed an Import Quota on Furniture,U

question 8

Multiple Choice

If the U.S.imposed an import quota on furniture,U.S.net exports of furniture

• A)and net exports of other U.S.goods and services would rise.
• B)would rise but net exports of other goods and services would fall.
• C)would fall but net exports of other goods and services would rise.
• D)and net exports of other U.S.goods and services would fall.

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Definitions:

Fixed Monthly Expenses

Expenses that do not change in total regardless of the level of activity, production, or sales within a given month.

Net Operating Income

A company's income after operating expenses are subtracted from its operating revenues.

Contribution Margin Ratio

The percentage of sales revenue that exceeds variable costs, indicating how much revenue contributes to fixed costs and profits.

Fixed Monthly Expenses

Regular expenses that do not fluctuate in amount from month to month, such as mortgage or lease payments.