At free-trade prices, a tennis racquet in Country A, a small country, sells for $100 and contains $40 worth of aluminum inputs and $30 worth of plastic. In Country A, the nominal tariff rates are 40 percent on tennis racquets, 20 percent on aluminum, and 10 percent on plastic. Based on this information, what is the effective rate of protection for the racquet industry in Country A?

When you care more about what your friends think of a good or service than what experts or other consumers in general think, you are making the error of ______.

a. assuming complete self-control b. choosing options that are positively framed c. giving too much weight to a small sample d. valuing your personal property too highly

If short-run equilibrium output equals 10,000, the income-expenditure multiplier equals 5, the mpc equals 0.8, and potential output (Y*) equals 9,000, then taxes must be ________ by approximately ________ to eliminate any output gap.

A. increased; 250 B. increased; 200 C. decreased; 250 D. decreased; 200