2123EconomicsMedium
If no imported inputs (hard-disk drive) go into the domestic production of a final product (desktop computer) then the?
Anominal tariff rate on the final product is greater than the effective rate on the product
Bnominal tariff rate on the final product is less than the effective tariff rate on the final product
CNone of the above
Dnominal tariff rate on the final product equals the effective tariff rate on the product
Correct answer
D. nominal tariff rate on the final product equals the effective tariff rate on the product
Explanation
The correct answer is nominal tariff rate on the final product equals the effective tariff rate on the product.