The tariff levied in a "large country" (Home) ,lowers the world price of the imported good.This causes
A) foreign consumers to demand less of the good on which was levied a tariff.
B) foreign suppliers to produce less of the good on which was levied a tariff.
C) domestic demand for imports to increase.
D) domestic demand for imports to decrease.
E) no change in the foreign price of the good it imports.
Correct Answer:
Verified
Q15: A tax of 20 cents per unit
Q16: Suppose the United States eliminates its tariff
Q17: Tariffs are NOT defended on the grounds
Q18: The effective rate of protection measures
A)the difference
Q19: As globalization tends to increase the proportion
Q21: An export subsidy differs from a tariff
Q22: A policy of tariff reduction in the
Q23: The deadweight loss of a tariff
A)is not
Q24: An important difference between tariffs and quotas
Q25: Should the home country be "large" relative
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