​An Increase in the Use of Quotas Is Expected To

question 12

Multiple Choice

​An increase in the use of quotas is expected to:

• A) ​reduce the country's current account balance, if other governments do not retaliate.
• B) ​increase the country's current account balance, if other governments do not retaliate.
• C) ​have no impact on the country's current account balance unless other governments retaliate.
• D) ​increase the volume of a country's trade with other countries.

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Definitions:

Inventory Levels

The quantity of goods and materials on hand at a particular time within a company.

Variable Costing Income Statement

A financial statement showing the costs that vary directly with the level of production, separated from fixed costs.

Variable Costs

Costs that vary in relation to a company's operations.

Manufacturing Margin

The difference between the cost of goods manufactured and the sales revenue generated from those goods.