Import tariff rates are typically higher on final consumption goods than on intermediate goods and raw materials sold to manufacturing firms. This tendency is known as

A. the terms of trade effect.
B. the tariff escalation pattern.
C. the sudden-damage effect.
D. the spillover effect.


Answer: B

Economics

You might also like to view...

Markets can efficiently handle irreversible decisions without involvement of government

a. True b. False Indicate whether the statement is true or false

Economics

The software industry has traits in common with monopoly markets

a. True b. False Indicate whether the statement is true or false

Economics

A tax levied on coal-fired plants that is based on the amount of carbon released in the atmosphere is considered by the firm as a:

A. variable cost. B. fixed cost. C. source of revenue. D. sunk cost.

Economics

Related to the Economics in Practice on page 274: According to the Economics in Practice, in industries such as electronics and computers, the patent policies of a country ________ when a company in that industry looks at different countries in which to locate its activities.

A. do not seem to make much difference B. are the only deciding factor C. must be among the most protective in the word D. are the primary deciding factor

Economics