Ceteris Paribus,tariffs and Nontariff Barriers on Imported Factor Inputs Result

question 23

Multiple Choice

Ceteris paribus,tariffs and nontariff barriers on imported factor inputs result in

• A)An increase in the price level and a decrease in unemployment.
• B)An increase in the price level and an increase in unemployment.
• C)A decrease in the price level and a decrease in unemployment.
• D)A decrease in the price level and an increase in unemployment.

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Definitions:

Residual Dividend Policy

A strategy where dividends are based on earnings minus funds retained to finance the firm's optimal capital budget.

After-Tax Earnings

The amount of net income a company retains after paying all taxes, representing the true profitability of the company.

Market Value

The cost at which an asset or service can be sold or bought right now in the marketplace.

Excess Cash

Cash that exceeds the normal operating needs of a business and is available for investing or returning to shareholders.