Import Tariffs

question 80

Multiple Choice

Import tariffs:

• A)reduce the price of foreign goods.
• B)reduce the overall efficiency of the world economy.
• C)create efficient utilization of resources.
• D)are unambiguously pro-consumer and anti-producer.

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Definitions:

LIFO Inventory Method

An inventory costing method that assumes the last items put into inventory are the first ones taken out, used in calculating cost of goods sold.

Gross Profit

The difference between total sales revenue and the cost of goods sold, before deducting overheads, salaries, and other expenses.

Raw Materials Inventories

Represents the stock of basic inputs that have not yet been used in the manufacturing process.

Manufacturer

A business or company engaged in the production of goods for sale, using labor, machines, tools, and chemical or biological processing or formulation.