Assume that Japan is a large country and levies an "optimal tariff." In this case, the tariff's terms of trade effect more than offsets the consumption and production losses and the tariff results in an overall welfare gain for Japan.

Question

Quizplus · Accepted Answer

Since the tariff's terms of trade effect more than offsets the consumption and production losses, it leads to an overall welfare gain for Japan. Therefore, the statement is true.

Assume That Japan Is a Large Country and Levies an "Optimal