Senator Blowhard Represents a State in Which Many Textile Firms

question 263

Multiple Choice

Senator Blowhard represents a state in which many textile firms are located.He wants to impose tariffs on all imported textiles.Which of the following is the least likely consequence of such tariffs?

• A) Domestic textile buyers will lose consumer surplus,have less variety,and will pay higher prices.
• B) Domestic textile sellers will gain producer surplus.
• C) Domestic textile sellers will have a higher rate of technological advance.
• D) Domestic textile sellers will have more market power.

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Definitions:

Spending Variance

The difference between the budgeted or planned amount of spending and the actual amount spent over a specific period, often analyzed in budgeting and financial management.

Actual Level

The real, measured level of output, performance, or activity experienced by an organization, as opposed to projected or estimated levels.

Occupancy Costs

Expenses related to occupying a physical space, including rent, utilities, and property taxes.

Flexible Budget

A flexible budget adjusts to changes in activity levels, providing a more useful comparison of actual to budgeted performance.