Suppose the United States decides to impose a $1,000 tax on every Japanese minivan sold in the United States. This is an example of:
A. a tariff.
B. free trade.
C. comparative advantage.
D. a quota.
Answer: A
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An evaluation of relative risk is known as
a. risk-benefit analysis c. benefit-cost analysis b. comparative risk analysis d. de minimis risk
In the 1920s and 1930s, economists became increasingly aware that there were industries that did not fit the model of perfect competition or pure monopoly. Two separate theories of monopolistic competition resulted
Edward Chamberlin of Harvard published the Theory of Monopolistic Competition in 1933. Chamberlin defined monopolistic competition as A) a relatively large number of producers offering similar but differentiated products. B) a relatively small number of producers offering similar but differentiated products. C) a market situation in which a large number of firms produce identical products. D) a market situation in which a small number of firms produce similar products.
A monopolist will maximize its profits by charging a higher price for customers with a price elasticity of
A) 0.1. B) 1. C) 1.5. D) 10.
Suppose that a bank has $30 million in asset X, $10 million in asset Y, and $20 million in asset Z. Each asset has a different risk weight. The risk weight for asset X is 30%, the risk weight for asset Y is 60%, and the risk weight for asset Z is 10%. The amount of risk-weighted assets for this bank is ____________ million. Assuming that the bank has to hold capital equal to 8% of its
risk-weighted assets, the bank must hold _____________ million in capital. A) $17; $13,6 B) $60; $4.8 C) $17; $1.36 D) $66; $5.28