In developed countries, tariffs on raw materials tend to be ?
Correct answer: D. lower than on manufactured goods
- A. highest of all
- B. higher than on manufactured goods
- C. equal to tariffs on manufactured goods
- D. lower than on manufactured goods
Explanation
Developed countries generally impose lower or zero tariffs on raw materials so domestic producers can obtain inputs cheaply. Manufactured goods usually face higher tariffs, providing greater protection to domestic industry.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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