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

question 169

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:

Consolidation Purposes

The process of combining the financial statements of a parent company and its subsidiaries into one comprehensive financial statement package, to present as if the group were a single entity.

Excess Amortizations

The amount by which amortization expense exceeds the amount necessary to amortize the cost of a tangible or intangible asset over its useful life.

Intra-Entity Asset Transfers

Transactions involving the transfer of assets or services between divisions or subsidiaries within the same entity, which may need to be adjusted for in consolidated financial reporting.

Depreciation Purposes

The allocation of the cost of an asset over its useful life for accounting and tax purposes.