Which of the Following Is the Best Example of a Tariff

question 80

Multiple Choice

Which of the following is the best example of a tariff?

• A) a subsidy from the government to domestic manufacturers of residential air conditioners to enable them to compete more effectively with foreign producers
• B) a limit on the quantity of residential air conditioners that can be imported from a foreign country
• C) a $150 fee imposed on all imported residential air conditioners
• D) a tax placed on all residential air conditioners sold in the domestic market to help offset the impact of emissions on the environment

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Definitions:

Unit Product Cost

The total cost (both fixed and variable) associated with producing a single unit of a product.

Additional Contribution Margin

The increase in contribution margin generated by an additional unit of sales, reflecting the revenue minus variable costs for that unit.

Purchasing Decision

The process of evaluating and choosing from among alternatives to buy products or services that best meet the criteria of the purchaser.

Variable Production Cost

Costs that vary with the level of production output, including direct materials, direct labor, and variable manufacturing overhead.