If the USImposes a Tariff on Autos to Prevent the Korean Imports

question 49

Multiple Choice

If the U.S.imposes a tariff on autos to prevent the Korean imports from freely entering the U.S.market,which of the following is most likely to occur?

• A)The price of autos to U.S.consumers would rise,and the demand for U.S.wheat exports would increase.
• B)The price of autos to U.S.consumers would fall,and the demand for U.S.wheat exports would decrease.
• C)The price of autos to U.S.consumers would fall,and the demand for U.S.wheat exports would increase.
• D)The price of autos to U.S.consumers would rise,and the demand for U.S.exports would decrease.
• E)The price of autos to U.S.consumers would rise,and the demand for U.S.wheat exports would decreasE.

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Definitions:

Net Profit

The total earnings of a company after subtracting all expenses, including taxes and operating costs, from its total revenues.

Variable Manufacturing Costs

Expenses that fluctuate with production output levels, including raw materials, direct labor, and utility costs directly involved in the manufacturing process.

Predetermined Fixed Overhead

A budgeted or estimated amount of fixed overhead costs, used to allocate overhead costs to products or services.

Variable Costing

A costing method that includes only variable costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of a unit of product, excluding fixed overhead costs.