If the tariff on computers is not changed, but the government then adds hitherto nonexistent tariffs on imported semiconductor components, then the effective rate of protection in the computer industry will
A) increase.
B) decrease.
C) remain the same.
D) depend on whether computers are PCs or "Supercomputers."
E) no longer apply.

Question

Quizplus · Accepted Answer

The effective rate of protection will decrease because the cost of imported components will rise, reducing the value added by domestic production in the computer industry.

If the Tariff on Computers Is Not Changed, but the Government