The Introduction of a Tariff ________ Consumer Surplus,________ Producer Surplus,and

question 96

Multiple Choice

The introduction of a tariff ________ consumer surplus,________ producer surplus,and ________ total surplus.

• A)increases;decreases;decreases
• B)increases;increases;decreases
• C)decreases;decreases;decreases
• D)decreases;increases;decreases
• E)decreases;increases;increases

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Definitions:

Wage

Payment to a worker from an employer for labor or services, usually expressed as an hourly, daily, or piece rate.

Marginal Revenue

The change in total revenue from an additional unit sold.

Marginal Cost

The cost of producing one additional unit of a good or service, important in decision-making processes about production levels.

Product of Labor

The goods or services generated as a result of work or employment, often measured to evaluate productivity.