Trade Diversion May Be Such That the Combined Welfare of Two

Multiple Choice

Trade diversion may be such that the combined welfare of two
Nations in the agreement actually ____ because of ____, not
Completely offset by the _____.

A) falls; loss of tariff revenue for the importing nation; gain in the exporting nation's producer surplus
B) rises; gains from trade; loss of jobs in the importing industry
C) rises; gain in tariff revenue; gain in jobs
D) remains the same; loss of tariff revenue; gains from product variety