1900EconomicsMedium
Suppose there is no tariff on imported inputs and the ratio of the value of imported inputs the value of the final product is 0.5 If the nominal tariff rate on the final product is 10 percent, the effective tariff rate equals?
A15 percent
B5 percent
C10 percent
D20 percent
Correct answer
D. 20 percent
Explanation
The correct answer is 20 percent.