A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2012 · Q301 Mark
When is the imposition of a tariff on a good most likely to reduce a trade deficit?
Awhen the country has a potential comparative advantage in producing that good
Bwhen the country is a member of an economic union
Cwhen the elasticity of supply of the good domestically is zero
Dwhen the price elasticity of demand for the good is zero
✓ Correct answer
A: when the country has a potential comparative advantage in producing that good
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