Suppose That a Country's Nominal Tariff Rate on Imports of Good

Suppose that a country's nominal tariff rate on imports of good X is 20% and that the country's nominal tariff rate on good A [a raw material and the only input (an imported input) used in making good X] is 5%. In this situation, the Effective Rate of Protection (ERP or "effective tariff rate") for the country's domestic X industry will be __________, and this type of escalated tariff structure __________ the type of tariff structures that high-income, developed countries actually have in place on goods imported from low-income, developing countries.

A) less than 20%; characterizes
B) less than 20%; does not characterize
C) greater than 20%; characterizes
D) greater than 20%; does not characterize