Short Answer and Graphing: Please show all of your work for any partial credit. (20 pts) 1. What is the nominal tariff and the effective rate of protection if there is a 30% tariff on a file cabinet and a 40% tariff on the imported steel? The file cabinet costs $200, half of the price is due to manufacturing costs and half to imported steel. (3 pts) 2. Provide a comparison of production subsidy, a tariff, and a quota using a graph of each in your explanation. (12 points). 3. a) Explain a Customs Union. (2 pts) b) Why does creating a Customs Union create trade and benefit a country? Use a graph in your explanation. (3 pts) c) Now assume that a small country (A) forms a Customs Union with another country (C), however that country is not the low cost producer, which is a third country (B). Use a graph in your explanation of the trade diversion and trade creation due to the formation of this Customs Union between A and C (as we showed in class). (5 pts) Short Answer and Graphing: Please show all of your work for any partial credit. (20 pts) 1. What is the nominal tariff and the effective rate of protection if there is a 30% tariff on a file cabinet and a 40% tariff on the imported steel? The file cabinet costs $200, half of the price is due to manufacturing costs and half to imported steel. (3 pts) 2. Provide a comparison of production subsidy, a tariff, and a quota using a graph of each in your explanation. (12 points). 3. a) Explain a Customs Union. (2 pts) b) Why does creating a Customs Union create trade and benefit a country? Use a graph in your explanation. (3 pts) c) Now assume that a small country (A) forms a Customs Union with another country (C), however that country is not the low cost producer, which is a third country (B). Use a graph in your explanation of the trade diversion and trade creation due to the formation of this Customs Union between A and C (as we showed in class). (5 pts)