Suppose That the U

question 262

Multiple Choice

Suppose that the U.S. imposed an import quota on beef. Sales of U.S. beef producers would

• A)rise and exports of other industries would increase.
• B)rise and exports of other industries would decline.
• C)not change, exports of other industries would increase.
• D)not change, exports of other industries would decline.

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Definitions:

Exempt

Not subject to an obligation, duty, or requirement; often used in the context of income that is not subject to taxation.

Capital Gains Rates

The tax rates applied to the profit made from selling an asset for more than its purchase price.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Fair Market Value

The estimated price at which an asset would sell in the marketplace when both buyer and seller are reasonably knowledgeable and willing parties.