A Nation Can Gain from Imposing a Tariff on Imports

question 61

Multiple Choice

A nation can gain from imposing a tariff on imports if it forces exporting countries

• A)to raise their prices to pay the tariff.
• B)to lower their prices to avoid stocks of unsold goods.
• C)to produce at diseconomies of scale.
• D)to accept some imports from the tariff-imposing nation.

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