Question

QUESTION 14

1. The imposition of an import tariff by a large nation
   

	a.	Leaves the nation’s welfare unchanged.
	b.	Reduces the nation’s welfare.
	c.	Allows for any of the cited possibilities
	d.	Increases the nation’s welfare.

QUESTION 15

1. The 1934 Reciprocal Trade Agreements Act

	a.	enabled the U.S. Congress to lower tariffs by up to 50 percent.
	b.	was enacted to reverse the damage caused by the Smoot-Hawley tariff.
	c.	enabled the United States to lower tariffs on a statutory basis.
	d.	resulted in multilateral trade negotiations.

Answer 1

Question 14

Option 4 - increase the nation's welfare

Because A tariff increase the national welfare when it imposed by an importing nation that is large enough to effect the world price by changing its tariff policy.
If the large country imposed a tariff in import which leads to the increase in the price of the imported products and because of the incriminate in the price, the demand of the imported products will decreases. Because country imposes tax on that product. So as the large importing the product on a large quantity, thats why it can effect the international prices. So the exporting countries get affected by this decrease in demand. So in order to create demand, the exporting countries decrease the price.