QUESTIONS 33 THROUGH 44 RELATE TO ECONOMICS

42. - MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM MORNING 2012
MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM MORNING 2012
42. Assuming its trading partner does not retaliate, which of the following conditions must hold in order for a large country to increase its national welfare by imposing a tariff? A. It must have a comparative advantage in the production of the imported good. B. The deadweight loss must be smaller than the benefit of its improving terms of trade. C. It must auction the import licenses for a fee to offset the decline in the consumer surplus.