What Is the Percent Reduction in Import Quantity in a Country

question 45

Multiple Choice

What is the percent reduction in import quantity in a country due to the tariffs imposed by the government, if the country's import tariffs are all 10 percent. The total imports affected by the tariffs are 40 percent of the GDP and the net national loss from the tariffs as a percentage of GDP is 0.6 percent.

• A)50 percent
• B)40 percent
• C)30 percent
• D)20 percent

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Definitions:

Null

Often refers to a hypothesis which assumes no significant difference or effect in a statistical analysis.

Alpha

In statistics, the threshold probability of wrongly rejecting the null hypothesis, typically set at 0.05.

T-statistic

A ratio computed from the observed sample mean difference divided by the standard error of the mean, used in hypothesis testing.

Critical Values

Critical values are thresholds in statistical hypothesis testing that define the boundary between the region where the null hypothesis is rejected and the region where it is not rejected.