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the change in the economic welfare of a country associated with an increase in a tariff equalsquestion 14 options:efficiency loss tax revenue gain terms of trade gain.efficiency gain - terms of trade loss.efficiency loss - tax revenue gain.efficiency loss tax revenue gain.efficiency loss - terms of trade gain.

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User Hixi
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Final answer:

The economic welfare impact of an increase in a tariff typically includes both efficiency loss to consumers and revenue gain for the government.

Step-by-step explanation:

The change in the economic welfare of a country associated with an increase in a tariff usually involves both positive and negative effects. On one hand, the government gains additional revenue from the tariff imposed on imported goods. On the other hand, consumers experience an efficiency loss because they face higher prices and have a reduced variety of goods to choose from. Additionally, domestic producers may see some benefits in the form of terms of trade gain if the tariff effectively shields them from foreign competition. However, the overall impact often results in an efficiency loss due to higher costs of production and consumption distortions balanced against the tariff revenue gain for the government.

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User Laszlo Hunyadi
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