High tariffs on intermediate inputs
A) increase the effective rate of protection on final goods.
B) have no impact on the effective rate of protection on final goods.
C) decrease the effective rate of protection on final goods.
D) lower the nominal rate of protection on final goods.
E) raise the nominal rate of protection on final goods.
C
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Refer to the table above. Based on this information, we can conclude that Laborland has a ________
A) current account surplus B) current account deficit C) trade surplus D) budget deficit
Three friends stay in an apartment. Their landlord offers to air-condition the apartment if they pay for the installation charges. Although they all want an air-conditioner, none of them say so. This is an example of the ________
A) free-rider problem B) paradox of thrift C) tragedy of commons D) paradox of plenty
In international finance, what does SDR stand for?
A) Special Drawing Rights. B) Single Deposit Reserve. C) Savings Deposit Ratio. D) Single Demand Remittance.
One plausible explanation of the U.S. productivity slowdown starting in 1973 is that it was a result of the increase in the relative price of energy. This explanation would require that, in light of higher energy costs, the
A) capital stock is overestimated. B) capital stock is underestimated. C) labor force is overestimated. D) labor force is underestimated.