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.
Correct Answer:
Verified
Q15: The domestic market failure argument is a
Q16: Q17: Q18: It is argued that the United States Q19: The efficiency case made for free trade Q21: The average tariff rate dutiable imports in Q22: It has been claimed that foreign governments Q23: The fact that trade policy often imposes Q24: The U.S. producer Boeing, and the European Q25: When the U.S. placed tariffs on French![]()
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