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NEW QUESTION: 1
The graph depicts the domestic supply of and demand for a product that is also sold in the domestic market by foreign producers. The domestic producers are protected by a tariff of the amount Pt minus Pw. Bt is the domestic price including the tariff, and Rw is the world price for the product. The effect of the tariff is to:

A. Reduce the domestic price from ORw to ORt
B. Reduce foreign sales in the domestic market from ac to bc.
C. Increase domestic production from Oa to Ob.
D. Increase domestic production from Ob to Cc.
Answer: C
Explanation:
Without the tariff, domestic production is determined by the intersection of the Pw line with the domestic supply curve at the quantity Oa. Domestic production increases from Oa to Ob as a result of the introduction of the tariff. Supply intersects the Pt line at a higher price and at a greater domestic quantity, Ob.

NEW QUESTION: 2
Firms A and B have simple capital structure with the same number of common stock outstanding. A finances its operations relying on debt financing while B prefers issuing preferred equity. If both the firms had the same net income last year, Firm A will have a:
A. lower EPS than B.
B. the same EPS as B.
C. higher EPS than B.
D. all of these answers can happen.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
For a simple capital structure, EPS = (Net Income - Preferred stock dividends)/weighted # of common shares Since both the firms have the same net income and common shares outstanding, Firm B will show a lower EPS due to the payment of preferred stock dividends.

NEW QUESTION: 3
Population is currently at 34,278,400 for country A and is expected to rise at a rate of 2%.
Which DO LOOP will correctly calculate growth rate over the next 10 years beginning in 2012 as shown in
the graphic below?
A:

B:

C:

D:

E:

A. Option C
B. Option B
C. Option D
D. Option E
E. Option A
Answer: B