17. When a large country imposes an import tariff on good X O a. Domestic production of good X decreases O b. Consumer surplus in the large country increases. O c. World prices of good X decrease O d. World prices of good X increase

17. When a large country imposes an import tariff on good X O a. Domestic production of good X decreases O b. Consumer surplus in the large country increases. O c. World prices of good X decrease O d. World prices of good X increase

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 4CQQ

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Concept explainers

Protective Tariffs

A tariff is a kind of tax that is charged on exported and imported items. It means tariff is charged on both kinds of goods i.e., exported and imported. However, some goods may be exempted from this kind of tariff. Protective Tariffs refer to the charges which a country charged on imported goods to protect its domestic market. It also protects countries Industrialists in their Production. So, that their markets remain intact and do not get dumped by outside supply.

Question

17. When a large country imposes an import tariff on good X
O a. Domestic production of good X decreases
O b. Consumer surplus in the large country increases.
O c. World prices of good X decrease
O d. World prices of good X increase

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