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The Effect of an Export Tariff on a Large Country

question 18

Multiple Choice

The effect of an export tariff on a large country is to ________ the terms of trade.


Definitions:

Consumer Price Index

A metric that tracks the average variation in prices that urban buyers pay for a selection of consumer products and services over a period.

Rising Cost

An increase in the price or expense of goods, services, or operational activities over time.

Labor Market

A marketplace where employers find workers and workers find jobs. It's the supply of available labor compared to the demand for it.

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