Should the Home Country Be "Large" Relative to the World,its

question 80

Multiple Choice

Should the home country be "large" relative to the world,its imposition of a tariff on imports would lead to an increase in domestic welfare if the terms-of-trade effect exceeds the sum of the:

• A) Revenue effect plus redistribution effect
• B) Protective effect plus revenue effect
• C) Consumption effect plus redistribution effect
• D) Protective effect plus consumption effect

---

Definitions:

First Amendment

A provision in the United States Constitution that prohibits the government from making laws which regulate an establishment of religion, or that would prohibit the free exercise of religion, or abridge the freedom of speech, the freedom of the press, the right to peaceably assemble, or the right to petition the government for a redress of grievances.

Federal Statute

A law enacted by the national government that applies to all states and people within the United States.

Legislation

The process of making or enacting laws, including the preparation and passage of bills through a legislative body.

Congress

The legislative branch of the United States government, responsible for making laws and consisting of two chambers: the Senate and the House of Representatives.