Suppose the United States Eliminates High Tariffs on German Bicycles

question 197

Multiple Choice

Suppose the United States eliminates high tariffs on German bicycles. As a result, we would expect

• A) the price of German bicycles to increase in the United States.
• B) employment to decrease in the German bicycle industry.
• C) employment to decrease in the U.S. bicycle industry.
• D) profits to rise in the U.S. bicycle industry.

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Definitions:

Material J

Material J refers to a specific category or type of raw material or input identified with the letter "J" used in manufacturing or production processes.

Direct Materials Quantity Variance

The difference between the budgeted amount of materials needed for production and the actual amount used, valuated at the standard cost.

Labor Rate Variance

The difference between the actual labor costs incurred and the expected or standard labor costs for the production volume achieved.

Direct Labor

Labor costs directly associated with the production of goods or services, involving work that can be directly traced back to specific products.