If the Government Imposes or Increases Tariffs or Quotas on Imports

question 45

Multiple Choice

If the government imposes or increases tariffs or quotas on imports, then:

• A)real GDP will decrease.
• B)the real current account balance falls.
• C)net domestic investment will rise.
• D)all of the above.

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Definitions:

Gross Profit Rate

A financial ratio that compares gross profit to net sales, indicating the efficiency of production and pricing.

Operating Expenses

Expenses incurred from normal business operations such as manufacturing costs, marketing fees, and office supplies.

Sales Revenue

Income generated from selling goods or services over a period, critical for determining a company's profitability.

Gross Profit

The financial gain calculated by subtracting the cost of goods sold from the revenue generated from sales of those goods.