What is the effect of the high (15.3%) U.S. tariff on garments imported from Bangladesh on the Bangladesh economy?
a. It has no effect on the Bangladesh economy, since U.S. consumers ultimately pay the tariff.
b. It acts as a hidden tax of $4.61 on Bangladeshi citizens.
c. It improves Bangladesh's terms of trade with the United States.
d. It has a very small effect on the Bangladeshi economy, since only 10% of its exports to the United States are subject to the tariff.
Ans: b. It acts as a hidden tax of $4.61 on Bangladeshi citizens.
You might also like to view...
Using the data in the table above, when the price of a skirt rises from $20 to $35, what is the price elasticity of demand? (Use the midpoint method.)
A) 0.33 B) 0.25 C) 1.00 D) 1.33 E) 3.00
Using the information in the table above, calculate the employment-to-population ratio
A) 75 percent B) 65 percent C) 50 percent D) 23.2 percent