Use the Following to Answer Questions

question 4

Multiple Choice

Use the following to answer questions:
Figure: Trade
-(Figure: Trade) Refer to the figure. If this figure represents the market for oil and the country imposes no tariffs on international trade, domestic consumption will be:

• A) 500 units.
• B) 1,000 units.
• C) 1,150 units.
• D) 1,300 units.

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Definitions:

Debt-Equity Ratio

A financial metric showing the mix of debt and equity used by a company to support its assets.

Investment Needs

The required capital an individual or organization needs to achieve financial goals.

Low-Dividend Clientele

Investors who prefer companies that offer lower dividend payments because they are in lower income tax brackets or have different investment goals.

High-Dividend Clientele

A group of investors who prefer stocks that pay high dividends because they seek steady income from their investments.