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.

---

Definitions:

Dominance Structuring

The organization or arrangement of elements in a system, group, or interaction according to their level of power or control.

Promising Option

A choice or decision that shows potential to yield beneficial results based on preliminary evidence or analysis.

Dominant Option

A choice or alternative considered superior or more advantageous compared to others in a decision-making scenario.

Power Differential

The disparity in influence or authority between individuals or groups, affecting interactions and outcomes.