If the United States Imposes a Tariff on Foreign Chocolate,how

question 119

Multiple Choice

If the United States imposes a tariff on foreign chocolate,how are U.S.buyers of chocolate affected?

• A) The price they pay for chocolate rises.
• B) Their demand for chocolate increases because the U.S. production chocolate increases.
• C) The quantity they consume is unchanged.
• D) The price they pay for chocolate falls but they consume less chocolate because less is imported.
• E) The price they pay for chocolate falls and they consume more chocolate.

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Definitions:

Equivalent Units

A concept used in cost accounting to denote the amount of finished goods units that could have been produced given the total amount of direct materials, labor, and overhead costs incurred.

FIFO Method

An inventory valuation method that assumes the first items purchased are the first ones sold, standing for "first-in, first-out."

Equivalent Units

A concept used in cost accounting to convert partially completed goods into a number of equivalent completed units for inventory valuation.

Forming Department

A specific department in manufacturing where raw materials begin their transformation into final products through various processes.