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If There Is Something Extra Bad About Local Consumption of a Product

Question 36

Multiple Choice

If there is something extra bad about local consumption of a product, then a tariff can be good for the country because:


A) the tariff makes all residents richer.
B) the tariff brings down the domestic price of the product.
C) the tariff leads to higher domestic price for the product.
D) the tariff revenue is invested in the production of substitute products.

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