The US has just reduced its tariffs for agricultural imports. Which of the following statements is TRUE about the impact of this policy change on the welfare of other countries when US is large enough to affect world prices with this policy change? Select one: a.The consumers and producers in net exporting countries become better off but the consumers and producers in other net importing countries become worse off. b.The consumers and producers in net exporting countries become worse off but the consumers and producers in other net importing countries become better off. c.The consumers in all other trading
The US has just reduced its tariffs for agricultural imports. Which of the following statements is TRUE about the impact of this policy change on the welfare of other countries when US is large enough to affect world prices with this policy change?
Select one:
a.The consumers and producers in net exporting countries become better off but the consumers and producers in other net importing countries become worse off.
b.The consumers and producers in net exporting countries become worse off but the consumers and producers in other net importing countries become better off.
c.The consumers in all other trading countries become worse off and the producers in all other trading countries become better off.
d.The consumers in all other trading countries become better off and the producers in all other trading countries become worse off.
Step by step
Solved in 2 steps
