Classical

Advanced Questions - Section 3

11:  

Antidumping duties applied to imported goods

A.

are abolished by the World Trade Organization

B.

result in decreases in consumer surplus for domestic households

C.

are imposed by industrial countries but not developing countries

D.

result in lower-priced goods for domestic consumers

 
 

Option: B

Explanation :


12:  

How will the increase in volatility in asset price affect the value of the option?

A.

Increase the value

B.

Decrease the value

C.

May not affect

D.

Any of the above

 
 

Option: A

Explanation :


13:  

A sudden shift from import tariffs to free trade may induce short-term unemployment in

A.

Import-competing industries

B.

Industries that are only exporters

C.

Industries that sell domestically as well as export

D.

Industries that neither import nor export

 
 

Option: A

Explanation :


14:  

When one country provides most favored nation status (normal trade relations) for another, it agrees to

A.

charge that nation's products a lower tariff than any other nation's

B.

charge that nation's products a tariff rate no higher than that on any other nation

C.

charge that nation's products a higher tariff than any other nation's

D.

exports to that nation any products that it wants to purchase

 
 

Option: B

Explanation :


15:  

Break-even of a Put option occurs when spot price is equal to

A.

Strike price + Premium

B.

Strike Price - Premium

C.

Premium

D.

None of the above

 
 

Option: B

Explanation :




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