The Prohibitive Tariff Is a Tariff That

question 5

Multiple Choice

The prohibitive tariff is a tariff that

• A) is so high that it eliminates imports.
• B) is so high that it causes undue harm to trade-partner economies.
• C) is so high that it causes undue harm to import competing sectors.
• D) is so low that the government prohibits its use since it would lose an important revenue source.
• E) is so low that it causes domestic producers to leave the industry.

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Definitions:

Cognitive Associations

The connections formed in the mind between ideas, feelings, or memories, influencing how thoughts and behaviors are organized.

Conscious Awareness

The state or quality of being aware of an external object or something within oneself, marked by perception and recognition of one's thoughts, feelings, and environment.

Heuristics

Simple, efficient rules, either hard-coded by evolutionary processes or learned, that help in making decisions, forming judgments, and solving problems.

Mental Shortcuts

Heuristic methods or simple strategies used by individuals to make decisions or judgments quickly without having to consider all possible variables, often resulting in cognitive biases.