Assume that domestic calculators are made with foreign parts that cost $80 and that the calculators retail for $90. If in a small country situation if a tariff of $1 is placed on the foreign parts, then the effective rate of protection is:
A) -10%.
B) 10%.
C) 50%.
D) 80%.
E) 100%.

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The Answer of Assume that domestic calculators are made with foreign parts that cost $80 and that the calculators retail for $90. If in a small country situation if a tariff of $1 is placed on the foreign parts, then the effective rate of protection is:
A) -10%.
B) 10%.
C) 50%.
D) 80%.
E) 100%.

Assume That Domestic Calculators Are Made with Foreign Parts That