Assume that a country imposes a tariff in order to gain a price advantage on an item. What is the typical response from the exporting country?
a. It accepts the situation, and does nothing about it.
b. It seeks greater efficiency in order to offset the tariff.
c. It refuses to sell to the country that imposes the tariff.
d. It retaliates by imposing tariffs or quotas on items from the other country.
d
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Explain how the Fed increases the money supply when it buys bonds in the open market
What will be an ideal response?
Which of the following is an example of a positive externality?
A) banning the sale of junk food on Sundays B) living next door to a dairy farm C) purchasing a pinball machine for your game room D) planting trees along a sidewalk which add beauty and create shade
Stock in Frozen Dreams, an ice cream manufacturer, has a price to earnings ratio of 24 . Is this comparatively high or low? What are two explanations for the size of this company's price to earnings ratio?
What is the lowest value the 80/20 ratio can take?
A. -1 B. 100 C. 1 D. 0