The Higher Price of Imported Products Due to Trade Barriers

question 330

Multiple Choice

The higher price of imported products due to trade barriers causes some consumers to shift their purchases to a domestically produced product that is now

• A) lower in price because import competition has risen.
• B) higher in price because import competition has risen.
• C) higher in price because import competition has declined.
• D) lower in price because import competition has declined.

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Definitions:

Cash

Cash represents money in the physical form of currency, such as banknotes and coins, that is used to conduct transactions.

Financing Activity

Transactions between a business and its financiers, such as issuing debt or equity.

Cash Inflow

Any increase in cash is called a cash inflow or a source of cash. When listing the total for a major section of the statement of cash flows, if cash is increased, the figure is often described as “cash provided” by operating activities (or by investing activities or financing activities).

Paying Interest

The act of compensating lenders for the use of their funds, typically expressed as a percentage of the principal amount borrowed.