Based on Scenario 6.1 above, if a tariff of 20 percent is placed on imports of dining room tables, and another tariff of 50 percent is placed on imports of wood and parts, then the effective rate of protection on tables made in the United States is
A) 70 percent.
B) 50 percent.
C) 20 percent.
D) 12.5 percent.
E) 0 percent.
D
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The table below shows data regarding Germany's labor market
Year Labor Force (millions) Number of Employed (millions) Population (millions) 2006 43.7 39.01 82.3 2007 43.7 39.06 82.2 2008 43.6 39.8 82.1 The data show that Germany's unemployment rate between 2007 and 2008 A) increased. B) decreased C) stayed the same. D) cannot be determined because the population decreased.
If a typical firm in a perfectly competitive industry is incurring losses, then
A) some firms will enter in the long run, causing market supply to increase and market price to rise increasing profit for all firms. B) some firms will exit in the long run, causing market supply to decrease and market price to fall increasing losses for the remaining firms. C) some firms will exit in the long run, causing market supply to decrease and market price to rise increasing profits for the remaining firms. D) all firms will continue to lose money.
In the long run, a monopolistically competitive firm will produce too little output to minimize average cost. Therefore, it will have
a. positive economic profit b. negative economic profit c. excess profit d. X-inefficiency e. excess capacity
Frictional unemployment may be economically beneficial if:
A. the social costs are limited to smaller tax revenues collected. B. its psychological costs are borne only by the unemployed worker. C. it leads to a better match between worker and job. D. losses in economic output are small.