Question
A nation can gain from imposing a tariff if: The tariff is a prohibitive tariff. The tariff causes the tariff revenue collected by the domestic
A nation can gain from imposing a tariff if:
The tariff is a prohibitive tariff.
The tariff causes the tariff revenue collected by the domestic government to exceed the losses caused by the production and consumption effects.
The tariff causes the world price to fall to such a degree that the amount of the tariff paid by foreign exporters exceeds the losses caused by the production and consumption effects.
The tariff is an ad valorem tariff.
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Microeconomics
Authors: Robert Pindyck, Daniel Rubinfeld
8th edition
978-0132870436, 132870436, 013285712X, 978-0133371178, 133371174, 978-0132857123
