A Decrease in the Tariff on Foreign-Produced Automobiles Would Be

question 26

Multiple Choice

A decrease in the tariff on foreign-produced automobiles would be most likely to harm

• A) steel producers, who supply steel to the domestic automobile industry.
• B) foreign producers of automobiles.
• C) importers of automobiles.
• D) domestic distributors of foreign automobiles.

---

Definitions:

Noncash Asset

An asset that is not cash or does not directly translate into cash in a short period, such as property, plant, and equipment.

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders, and has its own rights and obligations.

Treasury Stock

Shares that were once part of the outstanding shares but were bought back by the company, reducing the amount of stock on the open market.

Loss On Sale

A financial term representing the situation where the selling price of an asset is less than its purchase price.