There is an improvement in the welfare of country only when the
A)Positive effect of a tariff is lesser than its negative effect
B)Positive effect is larger than its negative effect
C)Positive effect of a tariff is equal to its negative effect
D)None of the above

Question

Quizplus · Accepted Answer

The welfare of a country improves when the positive effects of a policy, such as a tariff, outweigh its negative effects. This means the benefits gained from the tariff, like protecting domestic industries and jobs, are greater than the drawbacks, such as higher consumer prices and potential retaliation from trade partners.

There Is an Improvement in the Welfare of Country Only