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The Imposition of an Export Tax on Good X by Country

Question 17

Multiple Choice

The imposition of an export tax on good X by country A, other things equal,


A) will improve the terms of trade of country A if A is a "small" country.
B) will lead to a lower price of good X in country A's home market if A is a "large" Country but will not affect the price of good X in A's home market if A is a "small" country.
C) will always lead to an improvement in country A's welfare if A is a "large" country.
D) will lead to an increase in consumer surplus in country A.

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