Given the Following Information for Industry X in Country A

question 13

Multiple Choice

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 unit of X, and that country A is a "small" country:
$\begin{array}{lcc}&\text { free trade price }&\text {nominal tariff rate }\\\text { final product X } & \$200 & 25 \% \\\text { input Y (only input to X) } & \$ 100 & 15 \%\end{array}$

The effective rate of protection (ERP) for industry X is __________ percent. However, if The nominal tariff rate on input Y is eliminated (i.e., the 15% rate become 0%) , the ERP For industry X would become __________ percent.

• A) 20; 25
• B) 35; 50
• C) 40; 50
• D) 35; 25

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Definitions:

Positive Energy

A concept referring to a mindset or presence that is optimistic, uplifting, and supportive in nature, often contributing to a more positive environment.

Productivity

The efficiency at which an individual or organization can convert inputs into outputs, often measured in terms of work or goods produced.

Customer Satisfaction

The degree to which a product or service meets the customer's expectations and the customer's happiness with the purchase.

Superior Customer Service

Providing customers with an exceptional buying experience, characterized by attentive, efficient, and courteous service.