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Eddi Din [679]
3 years ago
7

The Japanese government restricts imports of rice into Japan. This import quota causes A. a decrease in the consumer surplus of

Japanese consumers. B. the price of rice to be lower than it would have been without the quota. C. Japanese production of rice to fall. D. a decrease in the producer surplus of Japanese rice growers.
Business
1 answer:
statuscvo [17]3 years ago
7 0

Answer:. A. a decrease in the consumer surplus of Japanese consumers.

Explanation:

When an import quota is imposed, it has the effect of limiting the imports of a commodity into an economy.

The effect of this is that supply drops as goods are no longer coming in from outside.

Because of this drop in supply, there is a increase in price.

This increase will reduce the Consumer surplus.

How?

Consumer Surplus is defined as the price that consumers pay vs the price they are willing to pay.

Because there was more supply, they were paying a price less than what they were willing to pay. As this supply has now dropped, the price they are paying is now closed to the price they are willing to pay.

Please do react or comment if you need clarification. Thank you.

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Village East expects to pay an annual dividend of $1.40 per share next year, and $1.68 per share for the following two years. Af
VashaNatasha [74]

Answer:

$15.15

Explanation:

Given:

  • D1 = $1.4
  • D2 = $1.68  
  • Growth = 3.4% = 0.034
  • Discount rate = 13.7 % = 0.137

As we know that:

  • P3= ($1.68 × (1+034)) / (0.137 - 0.034)= $16.86

So, P0:

= $1.40 / 1.137 + $1.68 / 1.1372 + ($1.68+ $16.86)/ 1.1373

= $15.15

Hope it will find you well.

8 0
3 years ago
Disability income plans which require that the insurer can never change or alter premium rates are usually considered
malfutka [58]
<span>Disability income plans which require that the insurer can never change or alter premium rates are usually considered </span>noncancellable. 
Noncancellable means an insurance policy that can not be canceled as long as the customer makes their premium payments. They can not cancel or change the service agreement for any reason if payments are made. 
8 0
3 years ago
Which of the following events would cause a rightward shift of the AD curvea rightward shift of the AD curve​, other things bein
Karolina [17]

Answer: C. There has been a decline in the foreign exchange value of the nation’s currency.

Explanation:

The Demand curve of a country can be written as an equation which is

C+I+G+(X-M)

C is consumption, I is investment, G is government expenditure, X is exports, M is imports and X-M is net exports.

When ever consumption, investment, government expenditure or net exports increase the demand curve shifts to the right and whenever they decrease the demand curve shifts to the left.

In this case when the value of the currency foreign exchange declines, the country reduce its imports because they are now more expensive as your currency's value is declining and the exports will increase because they will now be cheaper to foreign buyers as their currency is now gotten stronger. This decrease in imports and increase in exports will  increase net exports and an increase in net exports will shift the demand curve to the right

8 0
3 years ago
If the company were to issue an annual zero-coupon bond with a maturity of 2 years and par value of $1,000, what would be the ar
Contact [7]

Answer:

Note: <em>The complete question is attached as picture below</em>

1a. The one year spot rate can be calculated using the one year zero bond.

PV * (1 + S1) = FV

1 + S1 = 1000 / 900

S1 = 1.1111 - 1

S1 = 0.1111  

S1 = 11.11%

1b. PV of the 2 year bond = $950

Annual coupon = 1000 * 5% = $50

950 = 50 / (1 + S1) + (50 + 1000) / (1 + S2)^2

950 = 50 / 1.1111 + 1,050 / (1 + S2)^2

1,050/ (1 + S2)^2 = 950 - 45 = 905

(1 + S2)^2 = 1050 / 905

1 + S2 = 1.160221/2

S2 = 7.714%

1c. Price of the 2 year zero bond = 1,000 / (1 + 0.07714)^2

Price of the 2 year zero bond = 1,000 / 1.1602

Price of the 2 year zero bond = 861.9203586

Price of the 2 year zero bond = $861.92

3 0
2 years ago
Which of the following best describes the purpose of raising and lowering the
Alex787 [66]

Answer:

It is used by Fed to manage the economy by increasing or decreasing the amount of loans being made

Explanation:

The Fed decides on required reserve ratio for the banks and other financial institutions; t can lower or raise it. Reserve ratio is the portion of all the money that bank are required  to sets aside and hold onto; this means they are not allowed to lend that out to borrowers. This is a technique that is used to control the supply of money in the economy. By decreasing this ratio, banks will have more money to lend out and vice versa.

3 0
3 years ago
Read 2 more answers
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