The Nationally Optimal Tariff Is the Tariff for Which

Multiple Choice

The nationally optimal tariff is the tariff for which:

A) the production effect is equal to the consumption effect of the tariff.
B) the government collects the highest tariff revenue.
C) the difference between the government tariff revenue and the sum of consumption and production effect is the highest.
D) the difference between the part of the tariff paid by the exporters and the welfare loss associated with the consumption and production effects is the highest.