If Brazil imposes a 50% tariff on automobiles and a 25% tariff on motors, the effective rate of protection on autos is
A) higher than the nominal rate of protection on autos.
B) need more information to answer.
C) lower than the nominal rate of protection on autos.
D) equal to the nominal rate of protection on autos.
C
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Consider a situation in which the government has limited information about costs and benefits of pollution abatement associated with a given industry
However, it is known that the marginal social cost curve for emissions is much steeper than the marginal cost of abatement curve (in absolute terms). In this situation, which method of emissions control is preferable when the greatest concern is with accuracy of control rather than the cost of control? That is, should a fee be used or should a standard be used? Explain.
Which of the following is typically not a problem for low-income DVCs?
A. Capital flight. B. "Brain drains" C. High saving rates that slow aggregate demand growth. D. Poor infrastructure.