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

Tariffs decrease consumer surplus by raising prices. Trade restrictions often occur because they benefit a small group significantly, while the costs are spread across a larger group.

Which of the Following Is True