Senator Brown and Other Politicians Want to Restrict the Flow

question 45

Multiple Choice

Senator Brown and other politicians want to restrict the flow of technologically advanced products and data from the United States to other countries.To restrict or encourage exports,Congress can

• A)do nothing.
• B)assess antidumping duties.
• C)impose export taxes.
• D)set export quotas.

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Definitions:

NPV

A financial analysis approach that determines the present value of an investment's expected cash flows minus its initial cost, used to evaluate the attractiveness of projects.

Net Income

The net income of a company, calculated by deducting all costs and taxes from its total revenues.

Accounting Break-Even

The sales level that results in zero project net income.

Forecasting Risk

The possibility that errors in projected cash flows lead to incorrect decisions.