- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 6. International Trade
- Subject 2. International Trade Restrictions and Agreements
CFA Practice Question
Assume a small country imposes a tariff.
After the tariff, the producer surplus will ______
A. decrease by B.
B. increase by B.
C. decrease by B + C.
Explanation: Producer surplus will increase if the price rises.
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