An import quota on a product protects domestic industries by:
A. reducing the foreign supply to the domestic market and, thereby, raising the domestic price.
B. increasing the foreign supply to the domestic market and, thereby, lowering the domestic price.
C. increasing the domestic demand for the product and, thereby, increasing its price.
D. providing the incentive for domestic producers to improve the efficiency of their operation and, thereby, reduce their per-unit costs of production.
Answer: A
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An investment bank purchases securities from a corporation at a predetermined price and then resells them in the market. This process is called
A) underwriting. B) underhanded. C) understanding. D) undertaking.
For a privately owned business in a competitive market setting,
a. reducing resource use while producing the same output adds to profit and typically reduces waste products and thus cuts pollution as well. b. when property rights are well-defined and strictly enforced, the firm will be able to pollute air and water without having to bear the cost of the damages imposed on others. c. wasteful use of resources results in more pollution but greater profit. d. reducing pollution almost never pays.