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

question 72

Multiple Choice

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

• A) terms-of-trade gain is greater than its increase in tariff revenues.
• B) terms-of-trade gain is less than its increase in tariff revenues.
• C) terms-of-trade 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:

General Adaptation Syndrome

A three-stage response to stress described by Hans Selye, involving alarm, resistance, and exhaustion phases.

Conscientiousness

A personality trait characterized by being careful, diligent, and disciplined, showing a high level of thoughtfulness in responsibilities.

Personality Traits

Enduring characteristics or patterns of thought, emotion, and behavior that differentiate individuals from one another.

Self-Efficacy

An individual's belief in their own capability to execute behaviors necessary to produce specific performance attainments.