I have the answers for it so just need to know the working for it.

Q1. The market price of a Tee Shirt sold in a retail shop is $20. The total cost of producing this tee shirt is $4. The value added of this Tee shirt is

Select one:

a. $16 b. $20

c. $4

d. $24

Ans: A

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Q2. The Brazilian government announced an overall reduction of all tariffs with the effective rate of protection reducing from 40% to 15%. This may suggest

Select one"

a. The nominal rate of protection has dropped

b. The country is adopting a more outward oriented growth strategy

c. The government reducing its dependency on this form of tax as her source of tax revenue

d. All of the above

Ans: D

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Q3. The Brazilian imposed a 40% tariff on imported cars to promote its local car industry. We can deduce

Select one:

a. The effective rate of protection on cars is 40%

b. The nominal rate of protection on cars is 40%

c. Both the nominal and effective rate of protection is 40%

d. None of the above

Ans: B

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Q4. The key benefits of outward-oriented growth do not include:

Select one:

a. Rise in labour productivity

b. Greater competition & efficiency between firms in domestic and international markets

c. Improvement in quality of goods and services

d. Larger price gap between local and foreign prices

Ans: D

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