In order for large countries to successfully use tariffs to increase well-being,
A) they must have significant market power .
B) the deadweight loss created by the tariff must be greater than the government revenue the tariff generates.
C) domestic production must increase more significantly than for the small country case.
D) domestic consumption and imports must decrease more significantly than in the small country case.
Question 2
One economic advantage of a large share of exports in GDP is that countries
A) can reduce their budget deficits.
B) can purchase the imports they need.
C) can maintain lower rates of unemployment.
D) develop more labor-intensive industry.
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