With perfectly competitive markets protectionist trade policy can increase welfare in the country that employs it if A   the country is large enough to affect the world market price and is using import tariffs B   the country is small enough not to affect the world market price and is using import quotas C   the country is small enough not to affect the world market price and is using export subsidies D   the country is large enough to affect the world market price and is using export subsidies

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter16: Gaining From International Trade
Section: Chapter Questions
Problem 17CQ
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With perfectly competitive markets protectionist trade policy can increase welfare in the country that employs it if

A  

the country is large enough to affect the world market price and is using import tariffs

B  

the country is small enough not to affect the world market price and is using import quotas

C  

the country is small enough not to affect the world market price and is using export subsidies

D  

the country is large enough to affect the world market price and is using export subsidies

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