The optimum tariff is most likely to apply to ( ).
A: small tariff imposed by large country
B: small tariff imposed by small country
C: large tariff imposed by large country
D: large tariff imposed by small country
A: small tariff imposed by large country
B: small tariff imposed by small country
C: large tariff imposed by large country
D: large tariff imposed by small country
举一反三
- If a good is imported into (large) country H from country F, then the imposition of a tariff in country H
- If the U.S. (a large country) imposes a tariff on its imported good, this will tend to
- The terms of trade effect of a tariff refers to the fact that a small country can benefit by levying a tariff.
- A tariff can increase the welfare of a ''large'' levying country if the favorable terms-of- trade effect more than offsets the unfavorable protective effect and consumption effect.
- If a good is imported into (large) country H from country F, then the imposition of a tariff in country H __________. A: raises the price of the good in both countries (the "Law of One Price"). B: raises the price in country H and cannot affect its price in country F. C: lowers the price of the good in both countries. D: raises the price of the good in H and lowers it in F.