If Germany is considered a "large" country, a tariff will ______ increase its national welfare.
A) never
B) always
C) sometimes
D) have limited ability to

Question

Quizplus · Accepted Answer

Sometimes a tariff can increase a large country's national welfare, but it depends on the specific circumstances. For example, if a country is facing stiff competition from foreign producers and is experiencing widespread unemployment, a tariff could protect domestic industries and increase employment opportunities, leading to an increase in national welfare. However, if a country is heavily reliant on imports and imposes a tariff that leads to retaliatory tariffs from trading partners, it could harm domestic industries and lead to a decrease in national welfare. Therefore, the answer is sometimes.

If Germany Is Considered a "Large" Country, a Tariff Will