The imposition of an import tariff by a large nation
A. usually improves the nation’s terms of trade and increases the volume of trade.
B. worsens the nation’s terms of trade but increases the volume of trade
C. worsens the nation’s terms of trade and reduces the volume of trade.
D. usually improves the nation’s terms of trade but reduces the volume of trade.
Answer:D
The imposition of an import tariff by a large nation
A. usually improves the nation’s terms of trade and increases the volume of trade. B. worsens the nation’s terms of trade but increases the volume of trade C. worsens the nation’s terms of trade and reduces the volume of trade. D. usually improves the nation’s terms of trade but reduces the volume of trade.