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:

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