1597EconomicsMedium
If a country an imposes an import tariff, its welfare can improve if?
Athe country is a small country rather than a larger country
BThe tariff enhances the welfare of its trading partners
CIts government’s tax revenue increases because of the tariff
Dits terms of trade improve enough
Correct answer
D. its terms of trade improve enough
Explanation
The correct answer is its terms of trade improve enough.