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38. Question :The infant-industry argument for tariff protection is that tariffs should be imposed to protect from competition:Student Answer:industries that are essential if a country is to become an industrial nation. industries needed for national defense. industries that cannot compete with foreign competitors at this point in time, but will be able to once they gain some size and experience. industries that can compete with foreign competitors at this point in time and are deemed essential by the government.
Points Received:1 of 1 Comments:39. Question :Suppose the U.S. can produce 4 tons of food or 3 yards of cloth, while Mexico could produce 12 tons of food per hour and 6 yards of cloth per hour. Assuming constant opportunity costs, it is likely that:Points Received:1 of 1 Comments:40. Question :Despite the fact that water is necessary to sustain life, it is less expensive than soft drinks. Economic theory suggests that this is so because:Points Received:1 of 1 Comments:41. Question :Estimate the required rate of return on a company's stock given a stock price of $20 per share, an expected dividend of $2 per share at the end of the year, and a 3% dividend growth rate.Points Received:1 of 1 Comments:42. Question :Project A has an NPV of $500 and project B has an NPV of $800. Management should:Student Answer:choose both projects if they are mutually exclusive projects. choose project A only if they are mutually exclusive projects. choose both projects if they are independent projects. choose project B only if they are independent projects.. Points Received:1 of 1
Comments:43. Question :In the U.S., what form of business organization is subject to double taxation of profits?Points Received:1 of 1 Comments:44. Question :What entities are typically net demanders of funds in the U.S. economy?Points Received:1 of 1 Comments: