The Prohibitive Tariff Is a Tariff That

question 5

Multiple Choice

The prohibitive tariff is a tariff that

• A) is so high that it eliminates imports.
• B) is so high that it causes undue harm to trade-partner economies.
• C) is so high that it causes undue harm to import competing sectors.
• D) is so low that the government prohibits its use since it would lose an important revenue source.
• E) is so low that it causes domestic producers to leave the industry.

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