Protection in the Form of Tariffs Create Winners and Losers

question 57

Multiple Choice

Protection in the form of tariffs create winners and losers.Winners include ________ and losers include ________.

• A)U.S.consumers and taxpayers; foreign firms that rely on U.S.exports
• B)firms sheltered from foreign competition; U.S.consumers and taxpayers
• C)U.S.firms that rely on exports to foreign countries; foreign manufacturers
• D)the U.S.government; firms sheltered from foreign competition

---

Definitions:

Break-even Point

The financial stage at which total revenues equal total expenses, indicating that a business is neither making a profit nor incurring a loss.

Variable Expenses

Costs that change in proportion to the level of activity or volume of production.

Sales

The transactions involving the exchange of goods or services for payment.

Net Operating Income

A measure of profitability that calculates the difference between a company's operating revenue and its operating expenses, excluding taxes and interest.