Which of the Following Best Describes the Effects of Trade

question 64

Multiple Choice

Which of the following best describes the effects of trade policies?

• A)Trade policies affect the trade balance, plus all industries in the same ways.
• B)Trade policies affect the trade balance, plus some industries differently than others.
• C)Trade policies do not affect the trade balance, but they affect some industries differently than others.
• D)Trade policies do not affect the trade balance, but they affect all industries in the same ways.

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Definitions:

Selling and Administrative Expense

Costs related to the selling of products and the administration of a business.

Budgeted Unit Sales

The projected amount of sales in units that a company plans to achieve in a specific period.

Cash Disbursements

Payments made in cash by a business for various purposes, including operating expenses, asset purchases, and debt repayments.

Variable Overhead Rate

The rate at which variable overhead costs are applied to units of production, based on an activity metric such as labor hours.