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

Question

Quizplus · Accepted Answer

The net national cost of tariff protection is calculated by subtracting the benefits (increase in government revenue and increase in producer surplus) from the reduction in consumer surplus. This accounts for the overall economic impact of tariffs, including both the gains and losses to different sectors of the economy.

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