When a government allows raw materials and other intermediate products to enter a country duty free, this generally results in a(an)
A) effective tariff rate less than the nominal tariff rate.
B) nominal tariff rate less than the effective tariff rate.
C) rise in both nominal and effective tariff rates.
D) fall in both nominal and effective tariff rates.
E) rise in only the effective tariff rate.
B
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Maude is complaining about how much she pays in taxes now that the economy is finally doing really well. Even though she's in the same tax bracket as she was last year, she's paying $500 more in taxes this year, just because she earned more overtime pay this year. Maude's increased tax payment to the government is an example of:
A. automatic stabilizers. B. discretionary fiscal policy. C. expansionary fiscal policy. D. contractionary fiscal policy.
Suppose the economy is in a recessionary gap. In the absence of any policy intervention, the short-run aggregate supply curve will eventually shift:
A. down (to the right), causing the price level to fall and output to fall. B. down (to the right), causing the price level to fall and output to rise. C. up (to the left), causing the price level to fall and output to rise. D. down (to the right), causing the price level to rise and output to fall.
An agency that regulates product markets is the
A. Occupational Safety and Health Administration. B. Environmental Protection Agency. C. Federal Trade Commission. D. Equal Employment Opportunity Commission.
Which of the following is not a DVC policy likely to increase DVC economic growth?
A. Encouraging direct foreign investment. B. Opening economics to world trade. C. Establishing independent central banks. D. Encouraging emigration of highly skilled workers.