The nominal rate of protection shows the extent to which the domestic price of imported goods exceeds
A)what the price would be without tariffs.
B)the cost of intermediate inputs.
C)the social opportunity costs of the good.
D)the no-trade equilibrium price.

Question

Quizplus · Accepted Answer

The nominal rate of protection is calculated as the difference between the domestic price of an imported good and what the price would be without any tariffs.

The Nominal Rate of Protection Shows the Extent to Which