A Defining Characteristic of a "Large Nation" Relative to a "Small

question 5

Multiple Choice

A defining characteristic of a "large nation" relative to a "small nation" with respect to identifying the welfare effects of a tariff is that the:

• A)large nation is sufficiently powerful to influence the world market price of the imported commodity
• B)large nation has a higher per capita income than the small nation
• C)large nation is a monopsonist in the market for the imported commodity
• D)large nation has a higher marginal rate of substitution for the imported commodity than the small nation

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Definitions:

Canada

A country located in the northern part of North America, known for its diverse landscapes and multicultural population.

British Columbia

A province located on the west coast of Canada, known for its natural beauty, including mountains, forests, and the Pacific coastline.

International Labour Organization

A United Nations agency that sets international labor standards and promotes social protection and work opportunities for all.

Free Trade

A policy to eliminate barriers to the exchange of goods and services between countries, aiming to encourage international trade.