Developing countries often justify imposition of tariffs because:
a. it creates a burden on government budget.
b. it is easy to collect direct taxes from people in the developing countries.
c. a large number of people in the developing countries earn a taxable income.
d. developing countries find income taxes difficult to levy and collect.
e. the volume of imports of these countries is considerably low.
d
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Which of the following would cause a change in the quantity demanded of a product?
A) a higher price B) a higher income C) expectations of future price increases D) All of the above are correct.
If a firm is experiencing diminishing returns to a variable input, then:
a. it must be hiring less-productive units of the variable resource. b. it must be experiencing diseconomies of scale. c. the marginal physical product of the variable input must be decreasing. d. the average physical product of the variable input must be decreasing. e. its total product must be decreasing.
The long-run aggregate supply curve shifts right if
a. the price level rises. b. the price level falls. c. the capital stock increases. d. the capital stock decreases.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.