In the 1980s, Japanese Automobile Manufacturers, Fearing a U

question 42

Multiple Choice

In the 1980s, Japanese automobile manufacturers, fearing a U.S.-government-imposed restriction, agreed to a voluntary quota on the number of their cars exported to the United States. This quota affected the U.S. automobile market by

• A) increasing the prices of Japanese cars to U.S. consumers.
• B) increasing the black market for Japanese cars in the United States.
• C) decreasing the demand for domestically produced cars in the United States.
• D) increasing the market share of Japanese producers in the U.S. market.
• E) doing all of these.

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Definitions:

Statement of Stockholders' Equity

A financial statement that shows the changes in the value of a company's equity over a specific period.

Common Stock

Shares of ownership in a corporation, granting holders voting rights and a portion of profits in the form of dividends.

Balance Sheet

A financial statement that displays a company's assets, liabilities, and shareholders’ equity at a specific moment, showing the company's financial position.

Wages Payable

The total amount of wages that a company owes to its employees for work that has been completed but not yet paid for.