A Policy Aimed at Promoting the Development of Specific Industries

question 162

Multiple Choice

A policy aimed at promoting the development of specific industries within a country that may increase domestic welfare through trade with the rest of the world is known as a(n) :

• A) infant-industry policy.
• B) key-industry policy.
• C) strategic trade policy.
• D) welfare-trade policy.

Understand the risk-return relationship as defined by modern financial theories.

Recognize the role of macroeconomic factors in asset pricing (via multifactor models).

Understand the concept and process of constructing zero-investment portfolios for arbitrage.

Differentiate between the CAPM and APT in terms of assumptions and applications.

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Definitions:

Functional Flexibility

The ability of an organization to adapt and respond to changes by reallocating or restructuring its workforce to meet current demands or operational requirements.

Employment Flexibility

The degree to which a job allows for flexibility in hours, location, and tasks according to the needs of both the employer and employee.

Procedural Flexibility

The ability to adapt the rules and processes in a system, such as in legal proceedings or organizational policies, to accommodate different circumstances.

Wage Flexibility

The ability of wages to adjust in response to changes in the economic environment, including supply and demand for labor.