What does the effective rate of protection measure?

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Differentiates between tariffs that work and those that do notRepresents the lowest tariff level required to restrict importsIndicates how well a tariff generates government revenueReflects the percentage increase in domestic value added enabled by a specific tariff system

Explanation

Option D is correct because the effective rate of protection quantifies the percentage increase in value added for domestic producers that results from the existing tariff structure. It goes beyond nominal tariff rates by considering how tariffs affect the value added in domestic production.