Is an import tariff inefficient?

Yes, because consumers will be worse off (they will be able to consume less at higher prices).
5% (4 votes)
No, because domestic producers will be better off (they will be able to sell more at at higher prices).
4% (3 votes)
No, because the government will be better off (it will increase its revenue).
82% (68 votes)
Yes, because the total surplus (consumer surplus + producer surplus + government revenue) will decline.
10% (8 votes)
Total votes: 83
Question objectives: 
Understanding the winners and losers from trade protection.
Understanding the concepts of consumer surplus, producer surplus and government revenue.
Understanding the concept of a deadweight loss.
Understanding Pareto efficiency.
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