Tariffs and Import quotas, as trade protection methods, both result inHigher net present valuebLower CIF pricesc. Lower costs for projects that heavily depend on imported materialsd.Larger domestic price distortionsd.a7. According to the LMST methodology, world prices are used to calculate inputs costs because:they are free from any distortionsb. they do not include any transportation costsc. they reflect the prices at which goods can be alternatively bought or sold internationallyd. they are usually higher than market prices8. The value of imported inputs at CIF prices reflects:The world price of inputsb. The price of the inputs at the country's port before adding any domestic chargesc. The shadow price of the inputsd. All of the above.9. According to the LMST methodology,a. The official exchange rate has to be adjusted because of exchange rate controlsb. The official exchange rate can be used in CBA as long as it is used for all projectsC.The official exchange rate should not be used in social CBANon of the above

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Tariffs and Import quotas, as trade protection methods, both result in a Higher net present value b Lower CIF prices C Lower costs for projects that heavily depend on imported materials d Larger domestic price distortions 6 prices are used to calculate inputs costs becau

Tariffs and Import quotas, as trade protection methods, both result in a Higher net present value b Lower CIF prices C Lower costs for projects that heavily depend on imported materials d Larger domestic price distortions 6 prices are used to calculate inputs costs becau

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Chapter1: Making Economics Decisions

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Question

Tariffs and Import quotas, as trade protection methods, both result in
Higher net present value
b
Lower CIF prices
c. Lower costs for projects that heavily depend on imported materials
d.
Larger domestic price distortions
d.
a
7. According to the LMST methodology, world prices are used to calculate inputs costs because:
they are free from any distortions
b. they do not include any transportation costs
c. they reflect the prices at which goods can be alternatively bought or sold internationally
d. they are usually higher than market prices
8. The value of imported inputs at CIF prices reflects:
The world price of inputs
b. The price of the inputs at the country's port before adding any domestic charges
c. The shadow price of the inputs
d. All of the above.
9. According to the LMST methodology,
a. The official exchange rate has to be adjusted because of exchange rate controls
b. The official exchange rate can be used in CBA as long as it is used for all projects
C.
The official exchange rate should not be used in social CBA
Non of the above

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