In World of Two "Large" Countries, If One Country Imposes

question 7

Multiple Choice

In world of two "large" countries, if one country imposes a tariff, the welfare of the Tariff-imposing country will definitely improve (assuming no retaliation) if, the tariff-Imposing country

• A) is trading, both before and after the imposition of the tariff, in the "elastic" portion of Its trading partner's offer curve.
• B) is trading, both before and after the imposition of the tariff, in the "inelastic" portion Of its trading partner's offer curve.
• C) is putting the new tariff on top of an already existing tariff rate that is greater than the "optimum" tariff rate.
• D) puts on a prohibitive tariff.

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Definitions:

Pragmatic Thought

Decision making characterized by willingness to accept reality and compromise.

Labouvie-Vief's

refers to psychologist Gisela Labouvie-Vief's theories on cognitive and emotional development throughout the lifespan, emphasizing the complex interplay between logic and emotion as people age.

Cognitive Processes

Mental activities related to acquiring, processing, storing, and retrieving information, such as memory, perception, and problem-solving.

Relativistic Thinking

A stage of cognitive development in which individuals understand that knowledge is relative and dependent on the perspective from which it is viewed.