The Efficiency Case Made for Free Trade Is That as Trade

question 31

Multiple Choice

The efficiency case made for free trade is that as trade distortions such as tariffs are dismantled and removed

• A) government tariff revenue will decrease, and therefore national economic welfare will decrease.
• B) government tariff revenue will decrease, and therefore national economic welfare will increase.
• C) deadweight losses for producers and consumers will decrease, hence increasing national economic welfare.
• D) deadweight losses for producers and consumers will decrease, hence decreasing national economic welfare.
• E) government tariff revenue will increase, hence increasing national economic welfare.

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