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Suppose that the production of a $30,000 automobile in Canada requires $10,000 worth of steel. The Canadian nominal tariff rates for importing these goods are 25 percent for automonbiles and 10 percent for steel. Given this information, the effective rate of protection for the Canadian automobile industry is approximately:

A. 15 percent
B. 32 percent
C. 48 percent
D. 67 percent

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Suppose an importer of steel is required to pay a tariff of $20 per ton plus 5 percent of the value of steel. This is an example of a (an):

A. Specific tariff
B. Ad valorem tariff
Compound tariff
D. Tariff quota

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A compound tariff is a combination of a (an):

A. Tariff quota and a two-tier tariff
B. Revenue tariff and a protective tariff
C. Import tariff and an export tariff
D. Specific tariff and an ad valorem tariff

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If the domestic value added before an import tariff for a product is $500 and the domestic value added after the tariff is $550, the effective rate of protetion is:

A. 5 percent
B. 8 percent
C. 10 percent
D. 15 percent

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When a tariff on imported inputs exceeds that on the finished good,

A. The nominal tariff rate on the finished product would tend to overstate its protective effect
B. The nominal tariff rate would tend to understate it's protective effect
C. It is impossible to determine the protective effect of a tariff
D. Tariff escalation occurs

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A. 15 percent B. 32 percent C. 48 percent D. 67 percent

Suppose an importer of steel is required to pay a tariff of $20 per ton plus 5 percent of the value of steel. This is an example of a (an):

A compound tariff is a combination of a (an):

If the domestic value added before an import tariff for a product is $500 and the domestic value added after the tariff is $550, the effective rate of protetion is:

When a tariff on imported inputs exceeds that on the finished good,

A. 15 percent
B. 32 percent
C. 48 percent
D. 67 percent