A tariff on imports will necessarily improve the national welfare of a large country but it will worsen the national welfare of a small country.

Question

Quizplus · Accepted Answer

In a small country, a tariff on imports may not improve national welfare as it may lead to higher prices for consumers and reduce competition for domestic producers. In fact, it may harm the small country's economy.

A Tariff on Imports Will Necessarily Improve the National Welfare