Question

A large country can gain from imposing a tariff on the import of a good if: Group of answer choices 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 the tariff is high enough that the country becomes an exporter of the product. the tariff drives the quantity imported to zero. the tariff revenue collected by the domestic government is less than the losses caused by the production and consumption effects of the tariff.

Answer 1

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

Step-by-step explanation:

Tariff is a form of tax levied on imported goods. Tariffs increases the price of import. This would discourage foreign exporters because there would be less demand for their good.

Tariffs would reduce the consumption of foreign goods and this would lead to negative welfare effect on consumers. This negative welfare effect can be mitigated if the tariff paid is greater than the welfare losses