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The Main Difference Between a Tariff Imposed in a Large

Question 2

Multiple Choice

The main difference between a tariff imposed in a large country versus one imposed in a small country is that the tariff is the large country is:


A) entirely forward shifted onto domestic consumers.
B) entirely backward shifted onto foreign producers.
C) both partially forward shifted onto domestic consumers and partially backward shifted onto foreign producers.
D) ineffective as it does not generate any tariff revenue for the domestic government.

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