Which of the Following Is Not a Short-Run Impact of Increasing

question 111

Multiple Choice

Which of the following is not a short-run impact of increasing tariffs on the American industries they seek to protect?

• A)​government tax revenues increase
• B)​domestic production and sales by the protected industries increase
• C)​consumers' real incomes decrease
• D)​total domestic and foreign sales of those products in the United States increase

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Definitions:

Average Variable Cost

The total variable costs (costs that vary with production volume) divided by the quantity of output produced, representing the variable cost per unit.

Net Present Value (NPV)

The difference between the present value of cash inflows and the present value of cash outflows over a period of time. It's used to evaluate the profitability of an investment or project.

Capital Investment Funds

Financial resources that are used by a company to purchase physical assets like property, industrial buildings, or equipment.

Capital Rationing

The situation that exists if a firm has positive Net Present Value projects but cannot find the necessary financing.