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:

Retirement Fund

A pool of funds contributed to by individuals, employers, or both for the purpose of funding an employee's retirement.

Gross Pay

The gross income of an employee, which is the sum of all earnings before deductions or taxes are applied.

Deductions

Expenses or amounts subtracted from gross income to reduce the taxable income.

FICA-OASDI

Refers to the Social Security portion of the Federal Insurance Contributions Act tax, covering both the Old Age, Survivors, and Disability Insurance.