Which of the Following Is the Best Example of a Tariff

question 110

Multiple Choice

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

• A)a subsidy from the U.S. 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:

Treasury Stock Approach

The treasury stock approach is a method of accounting where shares bought back by the issuing company are not considered in calculating earnings per share or dividends.

Consolidation

Merging the financial results and operations of two or more entities into a single set of statements for reporting purposes, reflecting their combined performance and financial position.

Mutual Ownership

A form of ownership where an organization is owned by its members or customers, who share the benefits of ownership such as receiving dividends.

Treasury Stock

Shares that were issued and subsequently repurchased by the issuing company, reducing the amount of outstanding stock on the open market.