A(n)_____________ is a tariff sufficiently high to stop all international trade so that the nation returns to autarky.
A)optimum tariff
B)prohibitive tariff
C)nominal tariff
D)ad valorem

Question

Quizplus · Accepted Answer

A prohibitive tariff is a tariff that is set at such a high level that it effectively prohibits all imports and leads to autarky (self-sufficiency) in the domestic economy. The other options are not as extreme and do not necessarily lead to autarky.

A(n)_____________ Is a Tariff Sufficiently High to Stop All International