Given the Following Information for Industry X in Country A

question 8

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:
$\begin{array}{lcc}&\text { free trade price }&\text {nominal tariff rate }\\\text { final product X } & \$ 100 & 20 \% \\\text { input Y (only input to X) } & \$ 80 & 15 \%\end{array}$


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

• A) 17½; 25
• B) 35; 25
• C) 40; 20
• D) 40; 100

---

Definitions:

Monkey Brains

Informally refers to the study or examination of the brains of monkeys to understand more about neuroanatomy and cognitive functions.

Corpus Callosum

The broad strip of nerve fibers which serves as a bridge for communication between the two halves of the brain.

Split Brains

A condition resulting from surgery that severs the corpus callosum, leading to disconnection between the two hemispheres of the brain.

Visual Cortex

The part of the cerebral cortex that processes visual information, located in the occipital lobe of the brain.