According to economists, an ideal tariff level is reached when imports are reduced to the point where___________?

Show Answers

Comparative advantage is fully realizedThe price elasticity of imports equals one and tariff income is at its peakThe cost of imports matches the cost of exportsThe marginal social cost is equal to the marginal social benefitImport quantities equal domestic production levels

Explanation

The optimal tariff is defined as the point where the marginal social cost of imposing the tariff matches the marginal social benefit, balancing the economic impact on society.