MCQOPTIONS
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| 1. |
Economists suggest that an optimum tariff would be one which reduce imports to a point where___________? |
| A. | Comparative advantage is achieved |
| B. | Price elasticity of imports is unity and tariff revenue is maximized |
| C. | import prices are the same as export prices |
| D. | marginal social cost equals marginal social benefit |
| Answer» E. | |