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- Subject
- Tariffseconomics-mcqs › tariffs
- Published
- 28 May 2019
- Last updated
- 28 May 2026
What does the effective rate of protection measure?
Multiple choice question for Tariffs. Select an option, then review the explanation below.
Explanation
Option D is correct because the effective rate of protection quantifies the percentage increase in value added for domestic producers that results from the existing tariff structure. It goes beyond nominal tariff rates by considering how tariffs affect the value added in domestic production.
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 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?
- 5.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?