If the Tariff on Computers Is Not Changed, but Domestic

question 60

Multiple Choice

If the tariff on computers is not changed, but domestic computer producers shift from domestically produced semiconductors to imported 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.

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Definitions:

Trade Deficit

A situation in which a country's imports of goods and services exceed its exports, indicating that it is buying more from other countries than it is selling to them.

Exports

Items or services transferred from one country to another for commerce or trading.

Imports

Goods and services brought into a country from abroad for sale.

Trade Deficit

It occurs when a country's imports exceed its exports over a certain period, leading to more money leaving the country than entering it.