Use Figure 1 to Answer Questions

question 45

Multiple Choice

Use Figure 1 to answer questions

-In Figure 1,if the free trade price was $10 and a $5 tariff was imposed on the imports,then how much is the deadweight loss to the society?

• A)10
• B)20
• C)50
• D)90

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Definitions:

Expected Return

The probable return on an investment, taking into account all possible outcomes or the aggregate return that an investor anticipates over a certain period.

Systematic Risk

The risk inherent to the entire market or market segment, also known as market risk or un-diversifiable risk.

Security Held

A financial asset, such as stocks or bonds, that is owned and possessed by an investor or institution.

Realized Return

The actual gain or loss achieved on an investment over a specified time period.