When the Demand for Products Competing with Imports

question 99

Multiple Choice

When the demand for products competing with imports
Falls, demand for the specific factors used in their
Production falls and:

• A)the relative prices (earnings) of these specific factors will fall disproportionally.
• B)the relative prices (earnings) of these specific factors will rise disproportionally.
• C)the relative prices (earnings) of these specific factors will fall by the same rate as for all resources.
• D)the employment of these specific factors will rise disproportionally.

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Definitions:

Useful Life

The estimated period over which a fixed asset is expected to be usable by an organization, affecting depreciation calculation.

Tax Rate

The tax rate is the percentage at which an individual or corporation is taxed, determining how much tax needs to be paid on various income levels or economic activities.

Gain on Bargain Purchase

The financial gain recognized when a company acquires an asset for less than its fair value.

Non-Controlling Interest

This is an equity interest in a subsidiary not owned by the parent company, which has a claim on the subsidiary's earning and assets.