Effective protection will be greater if, all else equal,
a. imported inputs are a small percentage of the final product
b. tariffs on imported inputs are high
c. tariffs on the final product are low
d. quotas are added to tariffs on imported inputs
e. none of the above
A
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If protective import-restricting tariff are imposed by a country, in the majority of cases that nation's consumers end up
A) paying a lower price and consuming more of the good than they otherwise would. B) paying a lower price and consuming less of the good than they otherwise would. C) paying a higher price and consuming less of the good than they otherwise would. D) paying a higher price and consuming more of the good than they otherwise would.
When an economy's production capacity is expanding:
A. nominal GDP, but not necessarily real GDP, is rising. B. net exports is always a positive amount. C. DI exceeds PI. D. gross domestic investment exceeds depreciation.