Assume That a Tariff Is Imposed on Chinese Imports into the United

question 23

Multiple Choice

Assume that a tariff is imposed on Chinese imports into the United States.This tariff is likely to _____ U.S.producers and _____ Chinese producers.

• A)penalize;penalize
• B)benefit;benefit
• C)benefit;penalize
• D)penalize;benefit

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Definitions:

Volume Based Cost Drivers

Factors that cause the costs of an activity to increase or decrease with changes in the volume of production or services provided.

Labour Intensive

A process or industry that requires a large amount of manual labor relative to capital or machine usage.

Cost Driver

A factor that causes a change in the cost of an activity, directly affecting the cost of production or operations.

Cost Pool

A grouping of individual costs typically by department or service, from which cost allocations are made to products or services.