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

question 89

Multiple Choice

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

• A)terms­of­trade gain is greater than its increase in tariff revenues.
• B)terms­of­trade gain is less than its increase in tariff revenues.
• C)terms­of­trade gain is greater than its lost consumer surplus.
• D)increase in tariff revenues is greater than its lost consumer surplus.

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Definitions:

Ownership Position

The stake or interest that a person or entity has in an asset.

Shares Outstanding

The total number of shares that are currently owned by all shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Market Price

The ongoing rate at which a product or service is traded in a certain market.

Ownership Position

The share or portion of a company or property owned by an individual or entity, often expressed as a percentage of the total available shares.