Which of the Following Statements Is NOT True

question 175

Multiple Choice

Which of the following statements is NOT true?

• A) Tariffs are a source of government revenue.
• B) Tariffs protect domestic producers.
• C) Tariffs lower the effective prices of imports.
• D) Tariffs can cause inefficiency in production.

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Definitions:

Straight-line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its expected useful life.

Serial Bond

A type of bond that matures in installments over a period of time rather than having a single maturity date.

Principal

The initial amount of money borrowed or invested, excluding any interest or dividends.

Installments

Regular, often monthly, payments made towards settling a debt or purchasing a product over time.