Week 3 Application

# Week 3 Application - Week 3 Application: Question: 6. The...

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Week 3 Application: Question: 6. The nominal tariff rates on the 10 imports into the fictional country of Tarheelia, as well as the total import value of each good, are listed here: Good Nominal Rate Value A 10 % \$400 B 5% \$600 C Free \$500 D 30% \$300 E 2% \$200 F 2.5% \$500 G 15% \$100 H \$0.50/unit \$400(100 units) I 40% \$200 J \$2.50/unit \$100 (10 Units) A) Calculate the unweighted – average nominal tariff rate for Tarheelia B) Calculate the weighted – average nominal tariff rate for Tarheelia MY ANSWER: Before we can start let us change all the groups nominal % rates to decimal points : Group a = 10% = 10 / 100 = 0.10 ; Group B = 5% = 0.05 ; Group C = 0 ; Group D = 30 % = 0.30 ; Group E = 2 % = 0.02 ; Group F = 2.5% = 0.025 ; Group G = 15% = 0.15 ; Group I = 40 % = 0.40 Since group h and group j are different, I offset both of the groups to show how I got my answer: Group H = 0.50 / unit, we first do unit = 400/100 = 4 , now we have 0.50/4 = 0.125 Group J = 2.50 / Unit, we first do unit = 100 / 10 = 10, now we have 2.50 / 10 = 0.25

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## This note was uploaded on 04/10/2011 for the course ECON 2001-1 taught by Professor Nickeyturner during the Spring '11 term at Walden University.

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Week 3 Application - Week 3 Application: Question: 6. The...

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