Answer the following statements true (T) or false (F)
1.Although an import tariff provides the domestic government additional tax revenue, it benefits domestic consumers at the expense of domestic producers.
2.An import tariff reduces the welfare of a "small" country by an amount equal to the redistribution effect plus the revenue effect.
3.The deadweight losses of an import tariff consist of the protection effect plus the consumption effect.
4.The redistribution effect is the transfer of producer surplus to domestic consumers of the import-competing product.
5.If a country accounts for a negligible portion of international trade in a particular product, its levying an import tariff on that product necessarily increases its overall welfare.
1.False
2.False
3.True
4.False
5.False
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