The Average Tariff Rate in the US Today Is About

question 2

True/False

The average tariff rate in the US today is about 40 percent,but it was only 1.6 percent in 1946.

---

Definitions:

Price Floor

A government or regulatory-imposed minimum price set above the equilibrium price, preventing the market price from falling below it.

Total Welfare

The total economic well-being that a society achieves, including both consumer surplus and producer surplus.

Consumer Surplus

The contrast between what consumers intend to spend on a good or service and the actual amount they part with.

Producer Surplus

The difference between how much producers are willing to accept for a good versus how much they actually receive.