How have the trade policies of developed countries discouraged new exports of less-skilled-labor-intensive manufactured goods by developing countries?
What will be an ideal response?
POSSIBLE RESPONSE: In part, the industrialized countries have made exports of manufactured goods more difficult for developing countries. They discriminated against exports of manufactures from developing countries. Nontariff import barriers apply to a larger share of goods from developing countries than they do for industrialized countries. As for tariffs, the rates are in principle nondiscriminatory. However, tariff rates differ by type of product. In general, the highest tariff rates among manufactures are on those goods in which the developing countries have their broadest comparative advantage.
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If a 1 percent change in income generates a greater than 1 percent change in quantity demanded of boating expenditures, then boating is an:
a. example of Engel's law. b. inferior good. c. income inelastic good. d. income elastic good. e. example of a substitute good.
Which of the following statements about trade barriers is true?
A. The economic costs of trade barriers exceed their economic benefits, creating an efficiency loss for society. B. The economic benefits of trade barriers exceed their economic costs in developing nations. C. It is impossible to estimate the benefits of trade barriers. D. The economic costs and benefits of trade barriers are about equal.
Bill created a new software program he is willing to sell for $300 . He sells his first copy and enjoys a producer surplus of $250 . What is the price paid for the software?
a. $50. b. $250. c. $300. d. $550.
Economists say that a market where goods are not consumed by those valuing the goods most highly is
a. laissez-faire.. b. unequal. c. inefficient. d. rational.