Which of the Following Groups Will Benefit Least from Free

question 68

Multiple Choice

Which of the following groups will benefit least from free trade?

• A) Consumers.
• B) Firms importing capital equipment.
• C) Exporters.
• D) Employees producing tariff-protected goods.

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Definitions:

Net Operating Income

The income generated from normal business operations, calculated by deducting operating expenses from gross income.

Absorption Costing

An accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed overhead) in the cost of a product.

Fixed Costs

Costs that remain constant in total regardless of changes in the level of the business activity or production volume.

Product Costs

Costs that are directly associated with the production of goods or services, including direct materials, direct labor, and manufacturing overhead.