A large country can gain from imposing a tariff on the import of a good if

A. the part of the tariff paid by the foreign exporters is greater than the losses arising from the production and consumption effects of the tariff in the domestic market
B. the tariff is high enough that the country becomes an exporter of the product.
C. the tariff drives the quantity imported to zero.
D. the tariff revenue collected by the domestic government is equal to the losses caused by the production and consumption effects of the tariff.


Answer: A

Economics

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Economics