What Is a Tariff

question 134

Multiple Choice

What is a tariff?

• A)It is a tax imposed on an import.
• B)It is a tax imposed on an export.
• C)It is a tax imposed on production.
• D)It is a tax imposed on consumption.

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Definitions:

Fixed

Costs or expenses that do not change with the level of production or sales activity, such as rent or salaries.

Committed Fixed Costs

Investments in facilities, equipment, and basic organizational structure that can’t be significantly reduced even for short periods of time without making fundamental changes.

Short Term

A time period typically lasting less than one year, used to evaluate financial performance, investments, and objectives that are expected to be achieved within a brief timeframe.

Step-Variable Cost

A cost that remains constant for a certain level of activity, but changes in step fashion once a certain threshold is surpassed.