Which of the Following Reasons Explains Why Many Countries with Relatively

question 101

Multiple Choice

Which of the following reasons explains why many countries with relatively small populations import automobiles from Japan,U.S. ,and Germany rather than produce them domestically?

• A)Differences in resource endowments
• B)Economies of scale
• C)Differences in tastes
• D)Import quota
• E)Import tariffs

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Definitions:

Compounded Quarterly

Interest calculation where the interest earned over a quarter is added to the principal for the calculation of future interest, effectively compounding every three months.

Effective Rate

The actual interest rate of an investment or loan, taking into account the compounding of interest.

Effective Rate

The real rate of interest earned or paid on an investment or loan in a specified period, considering compounding.

Monthly Compounded

Refers to the process of adding interest to the principal sum of a loan or deposit, recalculated on a monthly basis. This is a repeat of Compounded Monthly with a new definition focusing on recalculating interest increase.