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A Country's Net Welfare Will Increase When It Imposes a Tariff

Question 84

Multiple Choice

A country's net welfare will increase when it imposes a tariff on a foreign monopolist if its:


A) terms-of-trade gain is greater than its increase in tariff revenues.
B) terms-of-trade gain is less than its increase in tariff revenues.
C) terms-of-trade gain is greater than its lost consumer surplus.
D) increase in tariff revenues is greater than its lost consumer surplus.

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