Import tariff rates are typically higher on final consumption goods than on intermediate goods and raw materials sold to manufacturing firms. This tendency is known as

A. the terms of trade effect.
B. the tariff escalation pattern.
C. the sudden-damage effect.
D. the spillover effect.

Answer: B

Economics

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Assume a customer of natural gas is negotiating with his supplier over the telephone. At the time prices of all the supplier's competitors are precisely the same

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Economics

The following equations represent the demand and supply for silver pendants

QD = 50 - 2P QS = -10 + 2P What is the equilibrium price (P) and quantity (Q - in thousands) of pendants? A) P = $20; Q = 15 thousand B) P = $50; Q = 10 thousand C) P = $10; Q = 30 thousand D) P = $15; Q = 20 thousand

Economics