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Problem
1. Explain why a country's use of preferential duties is inconsistent with MFN treatment of trading partners by that country.
2. Why do you suppose that there has been such a proliferation of different instruments of protection?
3. Suppose, in a small country, that under free trade a final good F has a price of $1,000, that the prices of the only two inputs to good F, goods A and B, are PA 5 $300 and PB 5 $500, and that 1 unit each of A and B is used in producing 1 unit of good F. Suppose also that an ad valorem tariff of 20 percent is placed on good F, while imported goods A and B face ad valorem tariffs of 20 percent and 30 percent, respectively. Calculate the ERP for the domestic industry producing good F, and interpret the meaning of this calculated ERP.
What is the size of the GDP gap? (assuming that equilibrium real GDP is $800 billion, potential real GDP is $900 billion, the MPC is 0.8 and the MPI is 0.40)
1) Describe the characteristics of a monopolistically competition industry. Describe why monopolistic- ally competition firms find it important to establish brand loyalty for their product and service? How do try to create brand loyalty? Give Two ..
What is the effective marginal tax rate of a government antipoverty program that guarantees every family a minimum income? Explain.
If you were asked to write the regulations concerning the deductibility of business expenses, how would you treat the following items, and why? Discuss the inequities and inefficiencies associated with alternative possible rules.
What is the velocity of money in this economy? If output is 1000 units, i is 4 percent and money supply M is $1,200, what is the price level P?
What some affects nuclear power plants and solar power plants can cause if near a community.
Describe the main elements of FISMA in the management and governance of federal information systems. Examine how FISMA and NIST work together to provide guidance and direction to organizations and agencies.
Stones for the pyramids were quarried far to the south (upstream on the Nile River) and were brought downstream on rafts only during the spring flood of the Nile. Discuss some of the planning and organizational implications of this immense logisti..
Identify the right fiscal policy that should be followed: contractionary or expansionary - explain why this fiscal policy should be used.
Why do you suppose that people who propose stiffer penalties for violations of laws prohibiting the sale and use of marijuana argue that toughened enforcement would push up the market price of marijuana and significantly reduce its use
How Walmart's marginal product labor related to its marginal product?
You can return any item at Home Depot within 90 days of purchase , no questions asked. This policy can hurt short-run profits. Does this mean Home Depot is not a profit maximizing firm? why?
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