Which best describes what a subsidy does?

It keeps the price of domestic goods relatively low,

It raises the price of imported goods,

It limits the import of foreign goods,

It eliminates all taxes on domestic goods,

A Minnesota farmer buys a new tractor made in Iowa by a German company. As a result, a) U. S. investment and GDP increase, but German GDP is unaffected. b) U. S. investment and German GDP increase, but U. S. GDP is unaffected. c) U. S. investment, U.

Which of the following is an advantage of buying a home? A. Mobility B. Tax benefits C. Fewer responsibilities D. Minimal financial commitment

In business terms the word buy is equivalent to the word

Metlock, Inc. is considering these two alternatives to finance its construction of a new $1.28 million plant: (1) Issuance of 128,000 shares of common stock at the market price of $10 per share. (2) Issuance of $1.28 million, 8% bonds at face value.

A process is replicated in another country where wages are 50 percent lower. Staffing and processing times are identical. What would be the effect on the costs of direct labor? A. Costs of direct labor would be 50 percent lower. B.

A project will produce an operating cash flow of $136,000 a year for three years. The initial cash outlay for equipment will be $274,000. The net aftertax salvage value of $15,000 will be received at the end of the project.

The cyclically-adjusted deficit as a percentage of GDP is 2 percent in Year 1. This deficit becomes 1 percent of GDP in Year 2. It can be concluded from Year 1 to Year 2 that: A. Fiscal policy was more expansionary B.

Carol takes out an insurance policy on her car. Carol can assign her policy to a third party

What's the purpose of a revenue tariff? A. To pay for specific social-support programs. B. To tax lower income people at a higher rate. C. To raise money for the government. D. To retaliate against protective tariffs.

The managers of Rug Emporium, a large rug store, decide to have a sale. The store manager works with the advertising department to make the public aware of the sale, with department managers to schedule enough salespeople to handle the increased