Which of the Following Statements Is True

question 6

Multiple Choice

Which of the following statements is true ?

• A) A tariff is a physical limit on the quantity of a good allowed to enter a country.
• B) An embargo is a tax on an imported good.
• C) A quota is a law that bars trade with another country.
• D) When a nation exports more than it imports it is running a balance of trade surplus.

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Definitions:

Fixed Period Cost

A type of cost that does not change with the level of production or sales over a certain period of time.

Delivery Charges

Delivery Charges are fees imposed for the delivery of goods or services from the seller to the purchaser's location.

Total Manufacturing Costs

This encompasses all costs involved in the production of goods, combining direct materials, direct labor, and manufacturing overhead.

Manufacturing Overhead Costs

All indirect costs associated with the manufacturing process, including but not limited to utilities, maintenance, and salaries of non-direct labor.