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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