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An Economic Failure of an Embargo Is Said to Have

Question 27

Multiple Choice

An economic failure of an embargo is said to have occurred if:


A) the embargo inflicts little damage on the target country but possibly a greater damage on the imposing country.
B) the target country suffers a greater welfare loss than does the imposing country.
C) the price of the good exported by the imposing country to the target country rises substantially in the target country when the embargo is imposed.
D) the prices of the embargoed goods do not decline in the imposing country.

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