Which of the Following Does a Country Adopt to Protect

question 53

Multiple Choice

Which of the following does a country adopt to protect its own domestic industries from international trade?

• A) Increase imports
• B) Impose tariffs and quotas
• C) Reduce exports
• D) Reduce trade barriers
• E) Encourage free trade

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Definitions:

Degree of Operating Leverage

A financial metric that measures the sensitivity of a company's operating income to its sales volume.

Break-even Point

The level of production or sales at which total revenues equal total expenses, resulting in no net loss or gain.

Contribution Margin

The amount by which sales revenue exceeds variable costs. It contributes to covering fixed costs and generates profit.

Fixed Expenses

Costs that do not fluctuate with changes in production level or sales volume.