Question

What is the effective tariff rate on the commodity, when no imported inputs are used?

A Equals the nominal tariff rate Correct Answer Incorrect Answer
B Greater than the nominal tariff rate Correct Answer Incorrect Answer
C Less than the nominal tariff rate Correct Answer Incorrect Answer
D Insufficient information Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

Solution

  When ai is 0, effective tariff rate (g) equals the nominal tariff rate (t)

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