If the U.S.(a large country)imposes a tariff on its imported good,this will tend to
A) improve the terms of trade of the United States.
B) have no effect on terms of trade.
C) improve the terms of trade of all countries.
D) cause a deterioration of U.S. terms of trade.
E) raise the world price of the good imported by the United States.

Question

Quizplus · Accepted Answer

A tariff imposed by a large country like the U.S. can improve its terms of trade by reducing the world price of the imported good, as the country has significant market power to influence prices.

If the US(A Large Country)imposes a Tariff on Its Imported Good,this Will