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.
A
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In Figure 10-5 above, suppose that the economy's initial steady-state point is A. An increase in the rate of national saving changes the steady-state point to
A) point B. B) point C. C) point D. D) a point to the left of point A.
All of the following are possible characteristics of oligopoly except
a. free entry into the industry. b. significant economies of scale. c. interdependence among sellers. d. homogeneous product.