Given the following information for industry X in country A, and assuming that input Y Is imported, that one unit of Y is required for each one unit of X, and that country A is a "small" country:
$\begin{array}{lcc}
&\text { free trade price }&\text {nominal tariff rate }\
\text { final product X } & \$ 120 & 10 \% \
\text { input Y (only input to X) } & \$ 80 & 15 \%
\end{array}$

The "effective tariff rate" or "Effective Rate of Protection (ERP)" for industry X in Country A is __________ percent.
A) 0
B) 10
C) 12.5
D) 25

Question

Given the following information for industry X in country A, and assuming that input Y Is imported, that one unit of Y is required for each one unit of X, and that country A is a "small" country:
$\begin{array}{lcc}
&\text { free trade price }&\text {nominal tariff rate }\
\text { final product X } & \$ 120 & 10 \% \
\text { input Y (only input to X) } & \$ 80 & 15 \%
\end{array}$

The "effective tariff rate" or "Effective Rate of Protection (ERP)" for industry X in Country A is __________ percent.
A) 0
B) 10
C) 12.5
D) 25

Quizplus · Accepted Answer

The Answer of Given the following information for industry X in country A, and assuming that input Y Is imported, that one unit of Y is required for each one unit of X, and that country A is a "small" country:
$\begin{array}{lcc}
&\text { free trade price }&\text {nominal tariff rate }\
\text { final product X } & \$ 120 & 10 \% \
\text { input Y (only input to X) } & \$ 80 & 15 \%
\end{array}$

The "effective tariff rate" or "Effective Rate of Protection (ERP)" for industry X in Country A is __________ percent.
A) 0
B) 10
C) 12.5
D) 25

Given the Following Information for Industry X in Country A