Calculate the effective rate of protection for the domestic MP3 player industry following the imposition of a 20 percent tariff on the imports of MP3 players. The cost of material inputs used in the production of MP3 players in the country is $100 per unit, and there is free trade in these material inputs. The world price of MP3 players is $175 per unit. Assume that the country is a small country.
A. 46?%
B. 35%
C. 72?%
D. 20%
Answer: A
Economics
You might also like to view...
In the long run
A) GDP > potential GDP. B) unemployment is at its natural rate. C) LRAS and SRAS lie on the same line. D) the inflation rate is zero.
Economics
The cost involved when choosing between alternatives is known as the
A. marginal cost. B. normative cost. C. sunk cost. D. opportunity cost.
Economics
Who was Jean-Baptiste Say? How does his theory (or "law") compare with that of John Maynard Keynes?
What will be an ideal response?
Economics
Differentiate between the quantity effect and price effect of a price cut by a monopoly
What will be an ideal response?
Economics