Author Question: Which of the following is a nontariff barrier policy tool? (a) Sanitary regulations. (b) Average ... (Read 50 times)

futuristic · **on:** Jun 30, 2018

Which of the following is a nontariff barrier policy tool?

(a) Sanitary regulations.
(b) Average duties.
(c) Phased liberalization.
(d) Ad valorem tax.

Question 2

At least one economist has suggested that even large developing-country cities are economically too small. What argument would support this contention? How would you argue against it?

What will be an ideal response?

flannelavenger · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

A

Answer to Question 2

Cities could be considered too small if the demand and supply of urban services are determined in a perfect market: migration indicates cities can accept new populations. Imperfect information, however, suggests that migrants continue to come even though services are insufficient to support them. (Information here is a public good to the extent that overpopulated cities suffer considerable negative externalities.)