A Country Can Impose a Tariff to Improve Its Own

question 108

Multiple Choice

A country can impose a tariff to improve its own terms of trade if it

• A)constitutes a large fraction of the world demand for some commodity that it imports.
• B)has a significant trade surplus.
• C)has a high level of industrial diversification.
• D)produces and exports a large fraction of the world's supply of some commodity.
• E)imports mostly primary products.

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