Q
If a country an imposes an import tariff, its welfare can improve if ?
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A
A. The country is a small country rather than a larger country
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B
B. Its terms of trade improve enough
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C
C. The tariff enhances the welfare of its trading partners
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D
D. Its governmentβs tax revenue increases because of the tariff
Correct Answer:
B. B. Its terms of trade improve enough