The Import Tariff Rates Are Typically Higher on Final Consumption

question 29

Multiple Choice

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

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Definitions:

Nonwrongfully Dissociates

The process by which a partner departs from a partnership according to the terms of the partnership agreement or without violating any legal obligations.

Liability

The state of being legally responsible for something, especially in terms of owing money or being obligated to provide compensation for damage or injury.

Creditors

People or organizations that are creditors to whom debtors or borrowers owe money.

Novation

The replacement of an original contract with a new one, where a new party takes over the rights and duties of the original party, with the consent of all parties involved.