If a Large Country Imposes a Tariff

question 154

Multiple Choice

If a large country imposes a tariff:

• A) the terms-of-trade effect may offset deadweight losses on its economy.
• B) the terms-of-trade effect can never offset deadweight losses on its economy.
• C) there will be no terms-of-trade effect.
• D) the country will always be worse off.

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Definitions:

Rate of Return

The rate of return is the gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Dividends Increase

An action by a company to raise the amount of money paid to shareholders through dividends.

Dividend Growth Rate

The annual percentage increase in a company's dividend payouts.

Required Rate of Return

The minimum percent gain on a yearly basis that captivates entities or persons to invest in a certain security or effort.