Figure 9-5 -When a Country That Imports a Particular Good Imposes a Good

question 56

Multiple Choice

Figure 9-5
-When a country that imports a particular good imposes a tariff on that good,

• A)consumer surplus increases and total surplus decreases in the market for that good.
• B)domestic sellers and domestic buyers become worse off.
• C)the domestic quantity demanded increases.
• D)domestic sellers become better off and domestic buyers become worse off.

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Definitions:

Administrative Expense

Costs related to the general management and administration of an organization, such as salaries of executives and office supplies.

Period Cost

Overheads not associated with the production activities, expensed in the timeframe they arise, like sales, general, and administrative outlays.

President's Salary

The compensation awarded to the president of a company, reflecting the level of responsibility and the size and profitability of the company.

Product Cost

The total cost attributed to the production of goods or services, including direct materials, direct labor, and manufacturing overhead.