Answer: Increase American production of steel (B)
Explanation:
A quota is a numerical limit on the amount of units of a product that can be imported. A quota is a form of protection or trade restrictions used by a country.
Like every other forms of trade protection such as tariffs, embargo etc, the quota is used by a country to help it's infant and local industries to grow, provide employment opportunities for it's people and also lead to economic growth.
If a quota is placed on imported steel, there'll be a reduction in the number of steel imported into the country and this will lead to a rise in the number of steels produced by American firms.
Answer:
The correct statement lies in option C.
Monopolies negatively affect consumers.
Explanation:
- The statement that best captures the economic message of the cartoon is that monopolies negatively affect consumers.
- When a specific enterprise or person is the only supplier in the market, it is called monopoly.
- Monopoly can result to higher prices of the good, also known as price taker as there is no other enterprise which can supply the same good.
- Here, Santa Claus is the monopoly as he is the only supplier of gifts in Christmas so he gets sloppy and result in low output in his work.
Answer:
We will consider positive interest rate which is i=0.21 or i=21%
Explanation:
The formula for Future value is:
The present value will become:
where:
n is the number of years
Since the condition is same present value,so the given data form the equation:
Divide above equation by 
Let 
. Above equation will become:
Rearranging above equation:
Solving the quadratic equation:
z=1.1, z=0.9
Let will become:
For z=1.1
For z=0.9
we will consider positive interest rate which is i=0.21 or i=21%
Answer: 3%
Explanation:
To calculate the real interest rate, it should be noted that the inflation rate is needed and this can be calculated using the consumer price index as:
= [(126-120)/120] × 100
= 6/120 × 100
= 5%
Real interest rate will now be:
= Nominal Rate - Inflation Rate
= 8% - 5%
= 3%
Answer:
The supply of the output from the hydroelectric power plants to decrease
Explanation:
As mentioned in the problem statement now an extra task is added to the process of electricity production. This will slow down the output rate of electricity and hence it can be safely concluded that the supply of electricity will decrease.
