Question：In some cases, society can gain by restricting imports up to the point at which the benefit of the last import equals its cost to society as a whole. A tariff set to achieve this result is called:
A. A deflationary tariff
B. A welfare tariff
C. A marginal tariff
D. An optimal tariff
The correct answer is:An optimal tariff.
The optimal tariff argument provides a demonstration of the possibility of gains in welfare from a tariff.
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