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Policymakers in a Small Country Impose a Specific Tariff of $2.00

Question 3

Multiple Choice

Policymakers in a small country impose a specific tariff of $2.00 per unit. Prior to the tariff, the country imported 10,000 units; after the tariff, 8,000 units. The amount of tariff revenue generated by the domestic government is:


A) 16000
B) 4000
C) 10000
D) There is no tariff revenue as this is a small country.

Correct Answer:

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