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The Existence of Marginal Social Benefits Which Are Not Marginal

Question 8

Multiple Choice

The existence of marginal social benefits which are not marginal benefits for the industry producing the import substitutes


A) is an argument supporting free trade and non-governmental involvement.
B) is an argument supporting the use of an optimum tariff.
C) is an argument supporting the use of market failures as a trade-policy strategy.
D) is an argument rejecting free trade and supporting governmental involvement.
E) is an argument rejecting the domestic market failure concept.

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