When a Tariff Supporter Argues That Foreign Producers Are Selling

question 59

Multiple Choice

When a tariff supporter argues that foreign producers are selling their products for prices below the costs of production,which of the following is being used?

• A) Save domestic jobs argument
• B) National security argument
• C) Dumping argument
• D) Infant-industry argument
• E) Diversity and stability argument

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Definitions:

Unit Selling Price

The amount of money charged for each individual unit of a product or service.

Contribution Margin Ratio

A financial ratio that measures the profitability of a product by subtracting variable costs from sales and dividing the result by total sales.

Operating Income

The profit realized from a business's operations after subtracting operating expenses from gross profit.

Fixed Costs

Expenses that do not change in proportion to the level of goods or services produced within a certain range.