What are trade barriers and why might a government adopt them as a policy? Explain how three examples of trade barriers function
What will be an ideal response?
A country that has a policy of using trade barriers enforces rules on foreign firms in order to give home companies an advantage. Examples of barriers include tariffs, quotas, non-tariff barriers, and exchange controls. Tariffs are taxes on imported goods, making foreign goods more expensive and giving domestic goods a price advantage. Quotas are limits on the amount of product that can be imported into a country in order to reduce competition for domestic industries. Non-tariff barriers are non-price restrictions such as manufacturing or production requirements for products. Exchange controls are used to ban or limit the amount of a specific foreign currency that is permitted to be traded or purchased within a country.
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If the loss ratio on a line of insurance is 70 percent and loss adjustment expenses are 33 percent, then the line is profitable before dividends if the ratio of
A. commissions and other expenses are 15 percent and investment yields are 10 percent. B. commissions and other expenses are 5 percent and investment yields are 6 percent. C. commissions and other expenses are 16 percent and investment yields are 20 percent D. commissions and other expenses are 15 percent and investment yields are 12 percent. E. commissions and other expenses are 6 percent and investment yields are 4 percent.
Which of the following is a possible advantage of raising the overtime pay threshold?
A) lower income tax rate B) higher employee motivation to move into upper-level management positions C) pay increases for all employees D) higher discretionary income for the additional workers who meet the new exemption criteria