Q
Economists suggest that an optimum tariff would be one which reduce imports to a point where___________?
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A
A. Comparative advantage is achieved
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B
B. Price elasticity of imports is unity and tariff revenue is maximized
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C
C. Import prices are the same as export prices
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D
D. Marginal social cost equals marginal social benefit
Correct Answer:
D. D. Marginal social cost equals marginal social benefit
