Q
If a nation fitting the criteria for the small nation model imposes a 10 percent tariff on imports of autos ?
-
A
A. The price of autos within the nation will rise by 10 percent
-
B
B. The price of autos within the nation will rise by less than 10 percent
-
C
C. The price of autos within the nation will rise by more than 10 percent
-
D
D. The price of autos will not rise because of internal competition
Correct Answer:
A. A. The price of autos within the nation will rise by 10 percent
