An Import Duty Has the Effect of All of the Following

question 83

Multiple Choice

An import duty has the effect of all of the following except

• A) reducing the number of units exported.
• B) raising the price of the product in the importing nation.
• C) reducing the number of units imported.
• D) creating a trade restriction.
• E) protecting a domestic industry from competition.

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account used to estimate the amount of accounts receivable that may not be collectible.

Uncollectible Expenses

Costs resulting from customers' failure to pay what they owe, also known as bad debts.

Percent of Sales Method

A financial forecasting model that predicts future variables, such as expenses and inventory levels, as a percentage of projected sales.

Credit Sales

Sales of goods or services that are paid for at a later date, extending credit to customers.