When a Government Allows Raw Materials and Other Intermediate Products

Multiple Choice

When a government allows raw materials and other intermediate products to enter a country duty free, this generally results in a(an)

A) effective tariff rate less than the nominal tariff rate.
B) nominal tariff rate less than the effective tariff rate.
C) rise in both nominal and effective tariff rates.
D) fall in both nominal and effective tariff rates.
E) rise in only the effective tariff rate.