If a tariff levied by a small country causes the welfare of the country to fall, why would such a country ever use a tariff?Because the revenue from the tariff is larger than the dead weight loss from the tariff.O Because the producers who gain from the tariff are much more numerous than the consumers who lose.O Because it always improves the country's terms of trade.Because the many consumers who lose from the tariff each lose so little that they do not bother to object.

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If a tariff levied by a small country causes the welfare of the country to fall, why would such a coun

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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

If a tariff levied by a small country causes the welfare of the country to fall, why would such a country ever use a tariff?
Because the revenue from the tariff is larger than the dead weight loss from the tariff.
O Because the producers who gain from the tariff are much more numerous than the consumers who lose.
O Because it always improves the country's terms of trade.
Because the many consumers who lose from the tariff each lose so little that they do not bother to object.

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