Free Trade and Trade Protection (id: f94f4c619)

本题目来源于试卷: Free Trade and Trade Protection，类别为 IB经济学

[单选题]
Which of the following will fall when protectionist tariffs are removed?

A. Consumer surplus
B. Import volume
C. Overall economic welfare
D. Domestic producer surplus


参考答案:  D


本题详细解析:

D

$\underset{‾}{\text{Explanation}}$:

Domestic producer surplus declines by area $b$ once tariffs are removed.

Choice A is wrong as consumer surplus increases by area $b+d+e+f$.

Choice B is wrong as imports would increase (from $Q_2{Q}_3$ to $Q_1{Q}_4$).

Choice C is wrong as overall economic welfare increases by $d+f$, as those areas were deadweight losses when tariffs were in place.

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