1. A good is produced using $160 in imported inputs. The current domestic price of the good is $200. For each of the following cases, find the level of effective rate of protection. The nominal tariff rate on the good is 10%, and there is no tariff on the inputs. b. The nominal tariff rate on the good is 10%, and there is a 10% tariff on the inputs. The nominal tariff rate on the good is 0%, and there is a 10% tariff on the inputs. с.
1. A good is produced using $160 in imported inputs. The current domestic price of the good is $200. For each of the following cases, find the level of effective rate of protection. The nominal tariff rate on the good is 10%, and there is no tariff on the inputs. b. The nominal tariff rate on the good is 10%, and there is a 10% tariff on the inputs. The nominal tariff rate on the good is 0%, and there is a 10% tariff on the inputs. с.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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