Spain Is an Importer of Computer Chips,taking the World Price

question 252

Multiple Choice

Spain is an importer of computer chips,taking the world price of $12 per chip as given.Suppose Spain imposes a $5 tariff on chips.As a result,

• A)Spanish consumers of chips and Spanish producers of chips both gain.
• B)Spanish consumers of chips gain and Spanish producers of chips lose.
• C)Spanish consumers of chips lose and Spanish producers of chips gain.
• D)Spanish consumers of chips and Spanish producers of chips both lose.

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Definitions:

Direct Method

An accounting method used in cash flow statements that lists major cash inflows and outflows directly, without adjustments.

Cash Inflow

refers to the movement of money into a business, often from operations, financing, or investing activities, contributing to the company's cash balance.

Cash Outflow

The movement of money out of a business, project, or investment, usually in the form of expenses, purchases, or cash distributions.

Cash Flow Ratio

A metric that assesses the liquidity of a company by comparing its operating cash flow to its current liabilities.