A tariff ______ increase a country overall welfare?
Correct answer: C. can sometimes
- A. will always
- B. will never
- C. can sometimes
- D. None of the above
Explanation
A tariff can sometimes raise national welfare in a large country if its improvement in terms of trade exceeds the efficiency losses caused by the tariff. It does not always do so, and a small country cannot influence world prices.
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