Compare the effects on world prices for an export tariff in a small country with an export tariff in a large country.
A) An export tariff in a small country and an export tariff in a large country both increase the world price by the amount of the tariff.
B) An export tariff in a small country does not change the world price, while an export tariff in a large country increases the world price.
C) An export tariff in a small country increases the world price, while an export tariff in a large country has no effect on the world price.
D) Neither an export tariff in a small country nor an export tariff in a large country has any effect on the world price.
Correct Answer:
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