Question

QUESTION 16

1. In the 1930s the United States charged an average tariff rate

   		that exceeded 50 percent.
   		that was less than its average tariff rate in 2007.
   		that was less than 2 percent.
   		that cut its exports to other countries by 50 percent.

2 points   

QUESTION 17

1. Profits that are reinvested in a firm rather than paid to the firm's owners are called

   		stock options.
   		retained earnings.
   		corporate bonds.
   		dividends.

2 points   

QUESTION 18

1. Generally with bond ratings, the ________ the rating, the lower the interest rate an investor will receive and the ________ the risk that the issuer of the bond will default.

   		higher; higher
   		higher; lower
   		lower; lower
   		lower; higher

2 points   

QUESTION 19

1. Which of the following is the best example of a tariff?

   		a $150 fee imposed on all imported residential air conditioners
   		a limit on the quantity of residential air conditioners that can be imported from a foreign country
   		a subsidy from the U.S. government to domestic manufacturers of residential air conditioners to enable them to compete more effectively with foreign producers
   		a tax placed on all residential air conditioners sold in the domestic market to help offset the impact of emissions on the environment

2 points   

QUESTION 20

1. From the highest percentage to the lowest percentage, the number of firms by business type in the United States is represented by which of the following?

   		sole proprietorships, corporations, partnerships
   		corporations, sole proprietorships, partnerships
   		sole proprietorships, partnerships, corporations
   		corporations, partnerships, sole proprietorships

Answer 1

16. In the 1930s the United States charged an average tariff rate that exceeded 50 percent. Hence,option(A) is correct.

17. Profits that are reinvested in a firm rather than a paid to the firm's owner are called retained earnings. Hence,option(B) is correct.

18. Generally with bond ratings , the higher the rating ,the lower the interest rate an investor will receive and the lower the risk that the issuer of the bond will default. Hence,option(B) is correct.

19. A $150 fee imposed on all imported residential air conditioners is the best example of a tariff. Hence.option(A) is correct.