MCQOPTIONS
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| 1. |
If a country an imposes an import tariff, its welfare can improve if ? |
| A. | the country is a small country rather than a larger country |
| B. | its terms of trade improve enough |
| C. | The tariff enhances the welfare of its trading partners |
| D. | Its government’s tax revenue increases because of the tariff |
| Answer» C. The tariff enhances the welfare of its trading partners | |