If the country illustrated in Figure 17-12 is initially trading without restrictions at a world price of $1.00, net welfare loss as a result of a tariff of $0.50 per unit is represented by area

A) c + i + e + f
B) i + f
C) i
D) f
E) b + d

Net Welfare Loss

Describes the reduction in social welfare, often resulting from inefficiencies such as taxes, subsidies, tariffs, or monopolies, which distort market equilibrium.

Tariff

A tax imposed by a government on goods and services imported from other countries to protect domestic industries from foreign competition.

Restrictions

Limitations or constraints imposed on activities, actions, or movements, often by laws, regulations, or policies.