Politicians Often Argue for Tariff Increases in Order to Reduce

question 29

Multiple Choice

Politicians often argue for tariff increases in order to reduce the nation's dependence on imports. If tariffs are increased, the long-run effect is most likely to be:

• A) an increase in American imports, and a decrease in American exports.
• B) an decrease in American imports, and an increase in American exports.
• C) an increase in both American imports and exports.
• D) a decrease in both American imports and exports.

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Definitions:

Internal Control

Processes and practices implemented to safeguard a company's assets, ensure financial reporting accuracy, and comply with regulations.

Customer's Ledger

A detailed record keeping of all transactions between a business and its customers, often part of the accounts receivable.

General Ledger

A comprehensive set of accounts that records all financial transactions of a business, used to prepare financial statements.

Accounts Receivable

Funds due to a company from its clients for goods or services rendered but payment has not been received yet.