Which of the Following Would Be the Most Likely Long-Run

question 29

Multiple Choice

Which of the following would be the most likely long-run effect if the United States increased its tariff rates and adopted stricter import quotas?

• A) a decrease in both U.S. imports and exports
• B) an increase in both U.S. imports and exports
• C) a decrease in U.S. imports and an increase in U.S. exports
• D) an increase in U.S. imports and a decrease in U.S. exports

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Definitions:

Stockholders' Equity

The equity held by shareholders in a company, calculated as the company's assets minus its outstanding debts, representing their residual ownership.

Net Operating Income

A measure of a company's profitability from its regular business operations, excluding deductions of taxes and interest expenses.

Turnover

Turnover refers to the rate at which employees leave a workforce and are replaced, or the total volume of sales made by a company during a particular period.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment, expressed as a percentage of the return on the investment relative to its cost.