Unlike Nontariff Barriers, Tariffs _____

question 48

Multiple Choice

Unlike nontariff barriers, tariffs _____.

• A) decrease the cost of exported goods
• B) increase the cost of imported goods
• C) are direct taxes on imported goods
• D) are nontax methods of reducing the volume of imported goods

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Definitions:

Operating Expenses

The costs associated with the day-to-day operations of a business, excluding the cost of goods sold.

Current Asset

An asset that is expected to be converted into cash or used up within one year or within the business's normal operating cycle.

Normal Operating Cycle

The average time period between when a company purchases raw materials for production and when it receives cash from selling the finished goods.

Current Liability

Current Liability is a company's financial obligation that is due to be paid within one year or within the normal operating cycle of the business.