In a small country,the net national cost of tariff protection is equal to the reduction in consumer surplus minus
A)the gain to foreigners.
B)the increase in government revenue and the increase in producer surplus.
C)the increase in government revenue.
D)the increase in producer surplus.
E)the efficiency loss and the consumption side loss.

Question

Quizplus · Accepted Answer

The net national cost of tariff protection is calculated as the reduction in consumer surplus minus the sum of the increase in government revenue and the increase in producer surplus. These two factors offset some of the loss in consumer surplus.

In a Small Country,the Net National Cost of Tariff Protection