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In a Two-Country World, the Terms-Of-Trade Impact of a Tariff

Question 17

Multiple Choice

In a two-country world, the terms-of-trade impact of a tariff will definitely improve the welfare of the tariff-imposing country (assuming no retaliation) if the tariff-imposing country


A) is a small country.
B) already has a tariff rate that is greater than the "optimum" tariff rate.
C) is situated in the "elastic" portion of its trading partner's offer curve.
D) is situated in the "inelastic" portion of its trading partner's offer curve.

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