Which of the Following Statements Is FALSE

question 27

Multiple Choice

Which of the following statements is FALSE?

• A)If the United States imposes a tariff on Japanese car imports,the price of cars in the United States is likely to increase.
• B)If the United States imposes a quota on Japanese car imports,the price of cars in the United States is likely to increase.
• C)If Japan imposes a subsidy on car exports to the United States,the price of cars in the United States is likely to increase.
• D)If Japan imposes a "voluntary export restraint" on car exports to the United States,the price of cars in the United States is likely to increase.

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing the ownership interest of shareholders.

Current Assets

Short-term assets that are expected to be converted into cash, sold, or consumed within one year or a business cycle, whichever is longer.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available to run its operations.

Current Ratio

A liquidity ratio that measures a company’s ability to pay short-term obligations with its current assets.