With the help of the given graph answer the following question: When the nation imposes a tariff,
Question:
With the help of the given graph answer the following question: When the nation imposes a tariff, the imports of the nation falls to Q2 - Q3. However, government revenue increases by area D and producer surplus increases by area B. This nation may not favor imposing tariffs on imports because_______
A. it raises social surplus for consumers.
B. it reduces the work load of the government.
C. it makes producers worse off.
D. it raises prices for consumers.
Which of the following nations will be against free trade?
A. A nation with lax environmental policies.
B. A nation that has the comparative advantage.
C. A nation who wants to preserve their cultural uniqueness.
D. A defense-oriented nation.
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair