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An Effective Tariff Is

Question 14

Multiple Choice

An effective tariff is:


A) the portion of the tariff that is actually paid to the government.
B) the percentage by which a tariff causes the price of a good to rise.
C) the portion of the tariff effectively paid by foreigners.
D) the amount that a tariff raises the price of a good relative to the value added of the industry that produced the good on which the tariff is levied.

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