Based on Scenario 6

question 2

Multiple Choice

Based on Scenario 6.1 above,if a tariff of 20 percent is placed on imports of dining room tables,and another tariff of 50 percent is placed on imports of wood and parts,then the effective rate of protection on tables made in the United States is

• A)70 percent.
• B)50 percent.
• C)20 percent.
• D)12.5 percent.

---

Definitions:

Physical Capital

Tangible assets that are used in the production of other goods or services, such as buildings, machinery, and equipment.

Technological Improvements

Innovations and advancements that enhance productivity, efficiency, and product quality in various industries.

Standard Of Living

The level of wealth, comfort, material goods, and necessities available to a person, group, or country.

Worker-Hour

A unit of measure representing the amount of work accomplished by one worker in one hour.