Explain how potential gains from further reductions in tariff levels are different from the gains of the past
What will be an ideal response?
It is likely that tariff cuts have diminishing marginal returns, so that each successive round of cuts leads to a smaller gain than the cuts before, and thus it is reasonable to guess that future cuts are not likely to have a large impact on world trade and income. While it is difficult to measure the gains from tariff reduction precisely, the value of the Doha Round of trade negotiations were estimated to be in the range of 0.1 percent to 0.5 percent of world GDP. This is certainly far smaller than the gains that relatively closed economies experienced when they opened their markets to trade.
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Refer to the scenario above. Which of the following will you choose in order to maximize return?
A) Plan 1 B) Plan 2 C) Plan 3 D) Plan 4
According to the law of diminishing returns, an additional unit of
A) capital produces more output than an additional unit of labor. B) labor decreases output. C) labor produces more output than the previous unit. D) labor produces less output than the previous unit.
It is easy to define income for tax purposes
a. True b. False
According to official statistics in the United States, a person is classified as poor
A. if the person's money income is below the poverty income threshold. B. only if the person's money income is below the poverty income threshold AND the person is not working. C. only if the person's money income is below the poverty income threshold AND the person is homeless. D. if the person's money income and the value of non-cash transfers is below the poverty income threshold.