The prohibitive tariff is a tariff that
A) is so high that it causes undue harm to import competing sectors.
B) is so low that the government prohibits its use since it would lose an important revenue source.
C) is so low that it causes domestic producers to leave the industry.
D) is so high that it causes undue harm to trade- partner economies.
E) is so high that it eliminates imports.
Correct Answer:
Verified
Q7: The opportunity to exploit economies of scale
Q8: The strongest political pressure for a trade
Q9: The difficulty of ascertaining the right second-
Q10: The efficiency case made for free trade
Q11: The political wisdom of choosing a tariff
Q13: The optimum tariff is
A)the tariff,which maximizes the
Q14: The domestic market failure argument is a
Q15: The fact that trade policy often imposes
Q16: The optimum tariff is most likely to
Q17: Protectionism tends to be concentrated in two
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents