1854EconomicsMedium
Suppose that the nominal tariff rate on finished computers is 12 percent and that the weighted average of the nominal tariff rates on the inputs used in producing computers is 18 percent. Thus, the effective rate of protection for the computer industry must?
Abe less than 12 percent and can be negative
Bbe less than 12 percent but must be greater than zero
Cexceed 30 percent
Dequal 6 percent
Correct answer
A. be less than 12 percent and can be negative
Explanation
The correct answer is be less than 12 percent and can be negative.