Were the Results of the U

question 134

Multiple Choice

Were the results of the U.S. tariff increase on imported small Japanese truck imports consistent with the predictions of the model of a tariff applied to a good exported by a foreign monopoly?

• A) No; the imports of trucks declined from 1980 to 2000.
• B) Yes; the rise in market price was less than the tariff imposed, implying that Japanese producers lowered their prices to maintain market share.
• C) Yes; but trucks and SUVs became indistinguishable, and a number of conclusions can be drawn.
• D) No clear conclusions can be drawn.

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Definitions:

Investment Grade

A rating that indicates a low to moderate risk of default for bonds and other securities, suggesting they are a secure investment.

Bond Ratings

Assessments assigned by rating agencies indicating the credit quality and risk level of bonds, with ratings ranging from high-grade (low risk) to high-yield (high risk).

No Par Value Stock

Shares issued without a nominal or face value, where the value of the stock is determined by the price investors are willing to pay for it in the market.

Stated Capital

The amount of capital reported by a company that represents the par value of the stock that has been issued and is often used in legal terms to determine how much capital the company can legally declare as dividends.