Given the Following Information for Industry X in Country A

question 7

Multiple Choice

Given the following information for industry X in country A, and assuming that at least some of input Y is imported, that one unit of Y is required for each unit of X, and that country A is a "small" country:
$\begin{array}{lcc}&\text { free trade price }&\text {nominal tariff rate }\\\text { final product X } & \$ 100 & 19 \% \\\text { input Y (only input to X) } & \$ 70 & 10 \%\end{array}$
The effective rate of protection (ERP) for industry X is __________ percent.

• A) 9
• B) 19
• C) 30
• D) 40

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Definitions:

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A form of severe malnutrition caused by inadequate protein intake, characterized by swelling, hair discoloration, and liver damage.

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A large band of neural fibers connecting the two hemispheres of the brain, facilitating communication between them.

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The part of the brain located at the front of the frontal lobes, crucial for decision making, social behavior, and personality expression.

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