The United States Feels That It Has Become Too Dependent

question 43

Multiple Choice

The United States feels that it has become too dependent on oil from Saudi Arabia,so it charges a tax of $10 per barrel on oil that can be imported from Saudi Arabia.This is an example of a(n)

• A) nontariff trade barrier.
• B) import quota.
• C) tariff.
• D) export subsidy.
• E) import subsidy.

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Definitions:

Natural Resource

Assets that occur in the environment naturally, such as minerals, forests, and water bodies, which can be used for economic benefit.

Depletion

The allocation of the cost of natural resources over their useful life.

Statutory Depletion

A tax deduction allowing an owner to account for the reduction of a product's reserves.

Financial Reporting

The process of disclosing financial results and related information to stakeholders and the public, which includes balance sheets, income statements, and more.