Which of the Following Would Be Expected If the Tariff

question 143

Multiple Choice

Which of the following would be expected if the tariff on foreign-produced automobiles was increased?

• A)​The domestic price of automobiles would fall.
• B)​The supply of foreign automobiles to the domestic market would be reduced, causing auto prices to rise.
• C)​The number of unemployed workers in the domestic automobile industry would rise.
• D)​The demand for foreign-produced automobiles would increase, causing the price of automobiles to increase in other nations.

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Definitions:

Total Debt to Total Assets Ratio

A financial metric that compares the total liabilities of a company to its total assets to assess leverage.

Creditor's Point of View

The perspective of an individual or institution that has lent money or provided goods or services to a debtor, focusing on the recovery of their credits.

Obligations

Legal or financial duties or commitments that an entity is required to fulfill, such as paying debts or performing certain actions.

Profitability

The ability of a company to generate earnings as compared to its expenses and other relevant costs.