If the Domestic Value Added Before an Import Tariff for a Product

question 43

Multiple Choice

If the domestic value added before an import tariff for a product is $500 and the domestic value added after the tariff is $550, the effective rate of protection is

• A) 5 percent.
• B) 8 percent.
• C) 10 percent.
• D) 15 percent.

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Definitions:

Two-Factor Theory

A psychological theory proposing that human emotions are based on two factors: physiological arousal and a cognitive label of the arousal.

Catharsis Hypothesis

The idea that expressing or releasing strong emotions leads to relief or emotional cleansing.

Social Exchange Theory

A theory that explains social change and stability as a process of negotiated exchanges between parties, predicting human relationships based on perceived costs and benefits.

Equity Theory

A theory that focuses on the fairness of outcomes that individuals receive in an organization, which influences their motivation and satisfaction.