A tariff can increase the welfare of a ''large'' levying country if the favorable terms-of- trade effect more than offsets the unfavorable protective effect and consumption effect.
举一反三
- The terms of trade effect of a tariff refers to the fact that a small country can benefit by levying a tariff.
- If the U.S.(a large country) imposes a tariff on its imported good, this will tend to() A: have no effect on terms of trade. B: improve the terms of trade of all countries. C: improve the terms of trade of the S. D: cause a deterioration of S. terms of trade.
- If the U.S. (a large country) imposes a tariff on its imported good, this will tend to ____________. A: cause a deterioration of U.S. terms of trade. B: have no effect on terms of trade. C: improve the terms of trade of all countries. D: improve the terms of trade of the United States.
- The ____ effect can be divided into the ____ effect and the ____ effect.
- If the U.S. (a large country) imposes a tariff on its imported good, this will tend to() A: have no effect on terms of trade. B: improve the terms of trade of all countries. C: improve the terms of trade of the United States. D: cause a deterioration of S. terms of trade. E: raise the world price of the good imported by the United States.