A "large" country, that levies a tariff on imports, cannot improve the terms at which it trades with other countries.
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For a "large'' country, a tariff on an imported product may be partially absorbed by the domestic consumer via a higher purchase price and partially absorbed by the foreign producer via a lower export price.
A. 对
B. 错
If a "large" country levies a tariff on an imported good, its overall welfare increases if the monetary value of the tariff's consumption effect plus protective effect exceeds the monetary value of the terms-of-trade effect.
A. 对
B. 错
If a "small" county levies a tariff on an imported good, its overall welfare increases if the monetary value of the tariff's consumption effect plus protective effect is less than the monetary value of the terms-of-trade effect.
A. 对
B. 错
A tariff on steel imports tends to improve the conpetitiveness of domestic automobile companies.
A. 对
B. 错