Tariffs and Import Quotas Both Result in

question 4

Multiple Choice

Tariffs and import quotas both result in

• A) lower levels of domestic production.
• B) the domestic government gaining revenue.
• C) lower levels of imports.
• D) higher levels of domestic consumption.

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Definitions:

Expense Recognition

The accounting principle that expenses should be recorded in the period in which they are incurred, regardless of when the cash is paid.

Assets

Resources owned by a business.

Liabilities

Financial obligations or debts a company owes to others, which must be settled over time by transfer of economic benefits.

Accumulated Depreciation

The total amount of depreciation expense charged against an asset over its useful life, reducing its book value.