Which of the Following Is True About Foreign Trade Zones

question 5

Multiple Choice

Which of the following is true about foreign trade zones?

• A)They are illegal in the United States.
• B)Goods imported into these designated U.S.areas are duty-free until they leave the zone.
• C)They have a special excise tax.
• D)They are areas outside the United States that offer special tax treatments.

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Definitions:

Short Run

A period in which at least one factor of production is fixed and cannot be changed, limiting the firm's ability to adjust fully to market changes.

Monopolistically Competitive

A market structure characterized by many sellers offering differentiated products, allowing for some degree of market power.

Fixed Costs

Costs that do not vary with the level of output or production, such as rent, salaries, and equipment maintenance.

Short Run

A period in economics during which some factors of production are fixed, affecting output levels and costing.