If a small country were to levy a tariff on its imports then this would
A) decrease the country's economic welfare.
B) change the terms of trade.
C) have no effect on that country's economic welfare.
D) raise prices on its exports in other countries.
E) increase the country's economic welfare.

Question

Quizplus · Accepted Answer

A small country imposing a tariff on imports typically decreases its economic welfare because it leads to higher prices for consumers and potential inefficiencies in the market, without significantly affecting world prices due to the country's small size.

If a Small Country Were to Levy a Tariff on Its