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A Tariff on a Good When the World Price Is

Question 35

Multiple Choice

A tariff on a good when the world price is lower than the domestic price leads to:


A) tariff revenues that will be lower than under free trade.
B) domestic imports that will be higher than under free trade.
C) lower domestic consumption of the good than under free trade.
D) lower domestic production of the good than under free trade.

Correct Answer:

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