Effective protection will be greater if, all else equal,
a. imported inputs are a small percentage of the final product
b. tariffs on imported inputs are high
c. tariffs on the final product are low
d. quotas are added to tariffs on imported inputs
e. none of the above
Question 2
Natural resources should be left in the ground
a. if their discounted future value exceeds their current value
b. so future generations will be able to use them
c. until companies agree to restore land after mining
d. because we may run out
e. economists have no good way to analyze this question
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