An Import Duty Has the Effect of All of the Following

question 83

Multiple Choice

An import duty has the effect of all of the following except

• A) reducing the number of units exported.
• B) raising the price of the product in the importing nation.
• C) reducing the number of units imported.
• D) creating a trade restriction.
• E) protecting a domestic industry from competition.

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Definitions:

Safe Payments

Payments that are secure and protected against fraud or theft, often through encryption and authentication measures.

Capital Deficit Balances

Situations where a company's total capital is less than zero, indicating that its liabilities exceed its assets.

Recorded Capital Account

An account on a company's balance sheet that represents the shareholders' equity invested in the business, either by contributing capital or retaining earnings.

Distribution

The process of allocating assets, such as cash dividends or stock shares, to shareholders as part of the earnings generated by a company.