Which of the following is true?
i.Compared to a no-trade situation,in a market with exports,consumer surplus is larger.
ii.Tariffs decrease consumer surplus.
iii.Trade is restricted because protection brings small losses to a large number of people and large gains to a small number of people.
A) only i
B) only ii
C) only iii
D) i and iii
E) ii and iii

Question

Quizplus · Accepted Answer

ii. Tariffs decrease consumer surplus because they increase the prices of imported goods, making them more expensive for consumers. iii. Trade is often restricted because protectionist policies can bring large gains to specific industries or groups, despite causing small losses to the broader population.

Which of the Following Is True