If Demand for a Product Is Increasing, an Import Tariff

question 192

True/False

If demand for a product is increasing, an import tariff is less restrictive than an import quota.

---

Definitions:

Erosion Cost

The gradual loss of asset value due to factors like wear, tear, and technological obsolescence, affecting long-term profitability.

Depreciation

The planned apportionment of the price of a tangible asset across its operational lifetime.

Capital Spending

Capital deployed by a business for the purchase or enhancement of physical properties, such as premises, workshops, or apparatus.

Inventory Requirements

The specific amount of stock that a company needs to have on hand to meet customer demand and support production processes.