If the Domestic Value Added Before an Import Tariff for a Product

question 43

Multiple Choice

If the domestic value added before an import tariff for a product is $500 and the domestic value added after the tariff is $550, the effective rate of protection is

• A) 5 percent.
• B) 8 percent.
• C) 10 percent.
• D) 15 percent.

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Definitions:

Categorical Imperative

A foundational concept in the moral philosophy of Immanuel Kant, which prescribes actions as universally mandatory, based on their maxims being capable of becoming universal law.

Moral Worth

The value or respectability of actions or decisions based on ethical principles.

Motive

A reason for doing something, especially one that is hidden or not obvious.

Subjective Plan

A course of action based on personal perspectives, feelings, or opinions rather than objective evidence or analysis.