Suppose a small country introduces an import tariff and the the revenues from the tariff are redistributed to consumers. Then A   producer rent will increase. B   aggregate welfare in the small country will increase C   consumer rent will decrease D   producer rent will decrease. E   consumer rent will increase.

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Chapter9: Application: International Trade
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Suppose a small country introduces an import tariff and the the revenues from the tariff are redistributed to consumers. Then

A  

producer rent will increase.

B  

aggregate welfare in the small country will increase

C  

consumer rent will decrease

D  

producer rent will decrease.

E  

consumer rent will increase.

 

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