Compared to a Quota,a Tariff on Shoe Imports

question 127

Multiple Choice

Compared to a quota,a tariff on shoe imports

• A) avoids an increase in the price of domestic shoes.
• B) does not harm foreign shoe producers,whereas a quota does.
• C) does not harm domestic shoe producers,whereas a quota does.
• D) does not harm foreign shoe consumers,whereas a quota does.
• E) generates revenue for the government,whereas a quota does not.

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Definitions:

Minimum Required Rate Of Return

This is the lowest return that investors expect for an investment, affecting the value and desirability of an investment opportunity.

Total Fixed Costs

The sum of all costs that do not change with the level of output within a certain range of activity for a specified period.

Average Operating Assets

The average value of the assets used in the normal operations of a business over a period.

Stockholders' Equity

Stockholders' Equity is the portion of a company's assets that belongs to shareholders after all liabilities have been subtracted, also known as shareholders' equity.