Suppose a Chinese firm moves its final assembly line to France and then ships the final products to other members of the EU trading bloc. This is an example of
A. trade diversion.
B. trade detection.
C. trade restriction.
D. trade deflection.
Answer: D
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Which landmark legislation made it illegal to engage in predatory pricing and also prohibited mergers if it led to weakened competition?
a. Sherman Act b. Robinson-Patman Act c. Cellar-Kefauver Act d. Clayton Act
A 401(k) account means that the maximum amount of savings that can be deposited is $401,000.
A. True B. False C. Uncertain
The coupon rate on newly issued bonds is usually ________ for bonds with favorable tax treatment, such as municipal bonds, and ________ for bonds that are very risky, such as junk bonds.
A. lower; higher B. higher; higher C. higher; lower D. lower; lower
Refer to the information provided in Figure 20.5 below to answer the question(s) that follow.
Figure 20.5Refer to Figure 20.5. The domestic price of oil is $130 per barrel, and the world price of oil is $120 per barrel. If the domestic government imposes a tariff of $________ per barrel, it will eliminate all oil imports and achieve tariff revenues of $________.
A. 5; 45 million B. 5; 20 million C. 10; zero D. 10; 120 million