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Suppose That Japan Levies a 40 Percent Tariff on Pickup

Question 68

Multiple Choice

Suppose that Japan levies a 40 percent tariff on pickup trucks and a 20 percent tariff on engines.The effective rate of protection on pickup trucks


A) is higher with the tariff on engines.
B) is lower with the tariff on engines.
C) is the same with or without the tariff on engines.
D) is equal to the tariff on engines.

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