The world price of a refrigerator is $716. The value of imported components used to make the refrigerator is $311. The tariff on imported refrigerators is $83. What is the effective rate of protection for refrigerators? ___%

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter34: Globalization And Protectionism
Section: Chapter Questions
Problem 46CTQ: Is it legitimate to impose higher safety standards on imported goods that exist in the foreign...
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The world price of a refrigerator is $716. The value of imported components used to make the refrigerator is $311. The tariff on imported refrigerators is $83.

What is the effective rate of protection for refrigerators? ___% (round to two decimal places)

 

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