Who Gains from an Export Tariff in a Small Country

question 148

Multiple Choice

Who gains from an export tariff in a small country?

• A) consumers because consumer surplus increases and exporters because they can increase their prices
• B) exporters because they can increase their prices
• C) the government because it collects tariff revenues and consumers because consumer surplus increases
• D) exporters because they can increase their prices and the government because it collects tariff revenues

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Definitions:

Overhead Applied

The process of allocating overhead costs to specific cost objects, such as products or jobs, based on a predetermined rate or method.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products or job orders, calculated before the production period begins.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products or job orders, calculated by dividing estimated overhead costs by an allocation base, such as direct labor hours.

Denominator Level

A term used in cost accounting to represent the base level or quantity used in calculating rates, such as in the determination of overhead rates or per-unit costs.