In general, a country's unweighted-average nominal tariff rate tends to be __________ than the country's weighted-average nominal tariff rate. The difference between the two would be __________ if the goods with the highest tariffs became imported relatively more heavily.
A) lower; smaller
B) lower; larger
C) higher; smaller
D) higher; larger

Question

Quizplus · Accepted Answer

The unweighted-average nominal tariff rate is generally higher than the weighted-average nominal tariff rate because the latter takes into account the actual volume of imports of each good. If goods with the highest tariffs are imported more heavily, the difference between the two averages would become smaller, as the weighted-average would increase closer to the unweighted-average.

In General, a Country's Unweighted-Average Nominal Tariff Rate Tends to Be