When no imported components (such as hard-disk drives) are used in the domestic manufacturing of a final good (like a desktop computer), what is the relationship between the nominal tariff rate and the effective tariff rate on that product?

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The nominal tariff rate on the final good is equal to its effective tariff rateThe nominal tariff rate on the final good exceeds its effective tariff rateThe nominal tariff rate on the final good is lower than its effective tariff rateNone of these options are correct

Explanation

If a final product is produced domestically without any imported inputs, the nominal tariff rate applied to the product will be identical to the effective tariff rate. This is because the effective tariff rate accounts for tariffs on both the final product and its imported inputs, and with no imported inputs, both rates must be equal.