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Assume That U

Question 59

Multiple Choice

Assume that U.S.-assembled computers are made with $1,000 of components and sell for $2,000 in the U.S. Now, a $200 tariff is imposed on foreign computers. The nominal tariff is ______ and the effective rate of protection is ________ .


A) 10%; 10%
B) 5%; 20%
C) 20%; 50%
D) 10%; 20%

Correct Answer:

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