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      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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