Should the home country be "large" relative to its trade partners, its imposition of a tariff on imports would lead to an increase in domestic welfare if the terms of the trade rectangle exceed the sum of the
A) revenue effect plus redistribution effect.
B) protective effect plus revenue effect.
C) consumption effect plus redistribution effect.
D) production distortion effect plus consumption distortion effect.
E) terms of trade gain.
D
Economics
You might also like to view...
________ and ________ are the largest sources of revenue collected by the federal government
A) Individual income taxes; corporate income taxes B) Individual income taxes; social insurance taxes C) Excise and other taxes; individual income taxes D) Corporate income taxes; excise and other taxes
Economics
The aggregate demand for money can be expressed by
A) Md = P × L(R,Y). B) Md = L × P(R,Y). C) Md = P × Y(R, L). D) Md = R × L(P,Y). E) Md = R × L(R, P).
Economics