Neco Model Questions Vol1 2017 Economics Question 35
Practice objective / multiple choice question 35 from the 2017 Neco Model Questions Vol1 Economics examination.
Country Y imposes a 20 % ad valorem tariff on imported steel, an input used in automobile production. Automobiles themselves are subject to a 15 % import tariff. The domestic price of an automobile before any tariff is ₦2,000,000 and the world price of steel (per unit) before any tariff is ₦500,000. Each automobile requires two units of steel. Compute the effective rate of protection for the automobile industry (as a percentage, rounded to the nearest whole percent).
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About This Question
This is Neco Model Questions Vol1 2017 Economics Question 35. It is one of the objective questions from the 2017 Neco Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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