Quotas Are a Greater Threat to Competition Than Tariffs Because

question 129

Multiple Choice

Quotas are a greater threat to competition than tariffs because

• A)Quotas allow imports but only at a higher price.
• B)Tariffs are voluntary and quotas are not.
• C)Quotas preclude additional imports at any price.
• D)Tariffs do not reduce the quantity sold and quotas do.

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Definitions:

Equity Multiplier

A financial ratio that measures a company's leverage, calculated as total assets divided by total equity.

Year 2

The second year in a given time frame or series, often referring to fiscal or calendar years.

Operating Cycle

The average period of time it takes for a company to purchase inventory, sell products, and collect cash from customers.

Total Asset Turnover

A financial ratio that measures a company's ability to use its assets to generate sales, calculated by dividing sales or revenue by the total assets.