An Import Quota Is a

question 166

Multiple Choice

An import quota is a

• A) tariff imposed on goods that are dumped in the country.
• B) law that prevents ecologically damaging goods from being imported into a country.
• C) market-imposed balancing factor that keeps prices of imports and exports in equilibrium.
• D) government-imposed restriction on the quantity of a specific good that can be imported.

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Definitions:

Fixed Costs

Expenses that do not change with the volume of production or sales, such as rent, salaries, and insurance premiums.

Absorption Costing

A costing method that includes all manufacturing costs, both fixed and variable, in the cost of a product.

Variable Costing

An accounting method that includes only variable production costs (costs that change with the level of output) in the cost of goods sold, highlighting the impact of production volume on profitability.

Variable Costing

An accounting method that includes only variable costs—costs that change with production levels—in the cost of production.