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The Prohibitive Tariff Is a Tariff That

Question 20

Multiple Choice

The prohibitive tariff is a tariff that


A) is so high that it eliminates imports.
B) is so high that it causes undue harm to trade-partner economies.
C) is so high that it causes undue harm to import competing sectors.
D) is so low that the government prohibits its use since it would lose an important revenue source.
E) is so low that it causes domestic producers to leave the industry.

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