If no imported inputs (hard-disk drive) go into the domestic production of a final product (desktop computer) then the ?

A. nominal tariff rate on the final product equals the effective tariff rate on the product
B. nominal tariff rate on the final product is greater than the effective rate on the product
C. nominal tariff rate on the final product is less than the effective tariff rate on the final product
D. None of the above

Correct Answer: nominal tariff rate on the final product equals the effective tariff rate on the product ✔

Last Updated: June 18, 2019