Tariffs Are Different from Quotas Because They

question 209

Multiple Choice

Tariffs are different from quotas because they

• A)increase government revenue.
• B)increase profits.
• C)increase the quantity traded.
• D)place all the burden on foreigners.

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Definitions:

WACC

The weighted average cost of capital, a calculation that reflects the average rate of return a company is expected to pay its security holders to finance its assets.

Riskier

Describing an option or investment with a higher level of uncertainty or potential for loss.

WACC

Stands for Weighted Average Cost of Capital, a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.

Suitable Projects

Projects that align with a company's strategic goals, resource capabilities, and risk tolerance.