As a Result of a Tariff on Imports, Consumers in the Importing

question 140

Multiple Choice

As a result of a tariff on imports, consumers in the importing country

• A)purchase more domestically produced goods and fewer foreign goods, resulting in the consumption of fewer total goods than without the tariff
• B)purchase more domestically produced goods and fewer foreign goods, resulting in the consumption of more total goods than without the tariff
• C)purchase more domestically produced goods and more foreign goods, resulting in the consumption of fewer total goods than without the tariff
• D)purchase fewer domestically produced goods and fewer foreign goods, resulting in the consumption of more total goods than without the tariff
• E)cease importing any goods at all

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Definitions:

Support Department Costs

Expenses incurred by the service departments that assist other internal departments rather than directly producing a product or service.

Allocate Overhead Costs

The process of assigning indirect costs to products, services, or business units based on relevant allocation bases.

Production Departments

Sections within a manufacturing facility where the actual production or assembly of goods takes place.

Activity-Based Costing

A method of accounting that assigns costs to products based on the amount of resources they consume.