Why Did the U

question 34

Multiple Choice

Why did the U.S.price of imports of compact trucks (like the Toyota
Tacoma) not increase by 25% when the U.S.Customs Service
Reclassified them as "complete or unfinished trucks" with a tariff of
25%?

• A)U.S.truck dealers that retailed imported compact trucks lowered their retail prices and absorbed part of the tariff.
• B)U.S.consumers negotiated lower retail prices from U.S.truck dealers selling imported compact trucks.
• C)The U.S.government decided not to collect the 25% tariff on imported Japanese compact trucks and instead made them subject to
• Voluntary export restraints.
• D)Japanese truck manufacturers lowered their prices on trucks sold in the U.S.market and absorbed part of the tariff.

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Definitions:

Stock Prices

The cost at which a share of a company can be bought or sold on the stock market.

Dividends

Money paid out to shareholders by a corporation, usually as a share of profits.

Retained Earnings

Profits that a company keeps or reinvests, rather than distributing to stockholders as dividends.

New Stock

Issuance of additional shares by a company to raise capital, which can dilute existing shareholders' ownership percentage.