Suppose that the world price of coffee makers is $20 and the value of imported intermediate goods used to produce coffee makers in the US is $12. If a tariff of 10 percent is placed on coffee makers and additional tariff on the imported intermediate goods used to produce coffee makers is 50%, the effective rate of protection is Select one: A. -75 percent. B. -50 percent. C. 0 percent. D. 10 percent. E. 25 percent.
Suppose that the world price of coffee makers is $20 and the value of imported intermediate goods used to produce coffee makers in the US is $12. If a tariff of 10 percent is placed on coffee makers and additional tariff on the imported intermediate goods used to produce coffee makers is 50%, the effective rate of protection is Select one: A. -75 percent. B. -50 percent. C. 0 percent. D. 10 percent. E. 25 percent.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose that the world
Select one:
A. -75 percent.
B. -50 percent.
C. 0 percent.
D. 10 percent.
E. 25 percent.
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