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 protection.
a. 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.
c. The nominal tariff rate on the good is 0%, and there is a 10% tariff on the inputs.

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The Answer of 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 protection.
a. 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.
c. The nominal tariff rate on the good is 0%, and there is a 10% tariff on the inputs.

A Good Is Produced Using $160 in Imported Inputs