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Suppose there is a 10% import duty on pocket calculators, but no import duty on the components used in their manufacture. If domestic manufacturers use
Suppose there is a 10% import duty on pocket calculators, but no import duty on the components used in their manufacture. If domestic manufacturers use 75% imported parts without tariff, then the effective protective rate of the tariff is?
1. 40%
2. 2.5%
3. 10%
4. 7.5%
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