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:

Machine Setups

The process of preparing and adjusting machines for a specific production run.

Fixed Manufacturing Cost

Costs that do not change with the level of production, such as salaries of permanent staff and rent for factory space.

Production Volume

The total quantity of products manufactured during a specific period.

Fixed Component

A cost or value that remains unchanged regardless of the level of output or activity, such as rent or salaried wages.