Suppose That a Country Has a Nominal Tariff Rate of 10

question 15

Essay

Suppose that a country has a nominal tariff rate of 10 percent on good A and imports $100,000 of good A, has a nominal rate of 5 percent on good B and imports $120,000 of good B, has a nominal rate of 12 percent on good C and imports $80,000 worth of good C, and has a prohibitive tariff rate of 50 percent on good D. These are the only four goods in existence. Calculate the country's unweighted-average nominal rate and its weighted-average nominal rate. Explain in economic terms the relationship you have found between the unweighted- and weighted-average rates.

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Definitions:

Reinforcement

In psychology, the process of encouraging or establishing a pattern of behavior by providing rewards or consequences.

Schedule

A plan for carrying out a process or procedure, giving lists of intended events and times.

Social Learning Theory

A theory that proposes people learn from observing others, with the environment, behavior, and cognition acting as primary factors influencing learning.

Knowledge Acquisition

The process of obtaining information and understanding through various means, such as learning, experience, or instruction, for personal or organizational application.