A US Tariff on Textiles Would ________ U

question 199

Multiple Choice

A U.S. tariff on textiles would ________ U.S. prices on clothing and ________ the number of jobs in the U.S. textile industry.

• A) reduce; decrease
• B) reduce; increase
• C) raise; decrease
• D) raise; increase

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Definitions:

Relevant Range

The range of activity within which the assumptions about fixed and variable cost behaviors hold true.

Contribution Margin

The difference between sales revenue and variable costs, measuring the ability of a business to cover its fixed costs.

Sales Mix

Sales mix is the proportion of different products or services that a company sells, reflecting the variety of sales contributing to total revenue.

Units Sold

The total quantity of products or goods sold by a company during a specific period.