In the Large­country Case, When a Tariff Is Imposed, the Country

question 81

Multiple Choice

In the large­country case, when a tariff is imposed, the country:

• A)sees a terms­of­trade gain.
• B)is able to reduce world price of the imported good.
• C)is going to experience an increase in consumer surplus.
• D)sees a terms­of­trade gain and is able to reduce world price of the imported good.

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Definitions:

Gravel

Loose rock fragments and pebbles, often used in construction for making concrete, roads, and landscaping, or as a surface material for driveways and pathways.

Breach of Contract

The violation of a contractual obligation, which can lead to legal action and the obligation to repair the breach through compensation or specific performance.

Wrong Material

The use of incorrect or inappropriate materials in the construction or production of goods.

Doctrine of Mistake

A principle in contract law that allows a contract to be nullified if both parties entered into the agreement with a mutual understanding that was fundamentally flawed or incorrect.