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- Subject
- Tariffseconomics-mcqs › tariffs
- Published
- 28 May 2019
- Last updated
- 28 May 2026
If the nominal tariff on finished computers is 12% and the weighted average nominal tariff on the inputs for making computers is 18%, what can be said about the effective rate of protection for the computer sector?
Multiple choice question for Tariffs. Select an option, then review the explanation below.
Explanation
Since the nominal tariff on inputs (18%) is higher than the tariff on the final product (12%), the effective rate of protection for the computer industry is less than the nominal tariff on the finished goods and can actually be negative, reflecting a disadvantage rather than protection.
More Tariffs MCQs
Practice related questions from the same subject.
- 1.Under a free trade system, what is the total worth of imports?
- 2.What do empirical studies generally indicate about the nature of U.S. import tariffs?
- 3.Which of the following statements about government trade policies is NOT typically true?
- 4.If Pakistan applies a tariff on ballpoint pens consisting of 25 rupees per pen plus 12% of the pen's price, what type of tariff is this an example of?
- 5.If the global market price for steel is $500 per ton, what ad valorem tariff rate corresponds to a specific tariff of $50 per ton?