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 _____ are not completely offset by the _____.

A) falls; losses 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; gains in tariff revenue; loss of producer surplus
D) remains the same; losses of tariff revenue; gains from product variety