The change in the economic welfare of a country associated with an increase in a tariff equals
A) efficiency loss - terms of trade gain.
B) efficiency gain - terms of trade loss.
C) efficiency loss + tax revenue gain.
D) efficiency loss + tax revenue gain + terms of trade gain.
E) efficiency loss - tax revenue gain.
A
Economics
You might also like to view...
In an economy with no income taxes or imports, if the multiplier is 5, what does the MPC equal?
A) 0.9 B) 0.2 C) 0.4 D) 0.8 E) 0.5
Economics
The open-economy macroeconomic model examines the determination of
a. the output growth rate and the real interest rate. b. unemployment and the exchange rate. c. the output growth rate and the inflation rate. d. the trade balance and the exchange rate.
Economics