A Tariff Makes the Total Economy

question 79

Multiple Choice

A tariff makes the total economy

• A) better off because it increases the domestic production of the good.
• B) better off because it decreases the deadweight loss from international trade.
• C) worse off because it creates a deadweight loss.
• D) worse off because it creates revenue for the government.
• E) worse off because it decreases both domestic consumer surplus and domestic producer surplus.

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Definitions:

External Iliac Artery

A major artery which arises from the common iliac artery to supply blood to the lower limb.

Iliolumbar Artery

An artery that supplies blood to the ilium and lumbar regions of the spine.

Axillary Artery

A major artery located under the arm, providing blood supply to the upper limb and parts of the thoracic area.