One of the Main Reasons That People Want to Limit

question 141

Multiple Choice

One of the main reasons that people want to limit imports is the

• A)fear that imports will decrease the income of Americans.
• B)idea that cheap foreign labor destroys American jobs.
• C)concept that if trade benefits another country, it must harm the United States.
• D)All of the above are correct.

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Definitions:

Incremental Overhead

The additional indirect costs incurred due to a change in business activities, such as an increase in production volume.

Income Taxes

Taxes levied by a government directly on income, especially an annual tax on personal or corporate earnings.

Sunk Costs

Sunk costs are expenses that have already been incurred and cannot be recovered.

Opportunity Costs

The forfeiture of possible benefits from different options when selecting one option over the others.