The Imposition of Tariffs on Imports Results in Deadweight (Triangle)

question 14

Multiple Choice

The imposition of tariffs on imports results in deadweight (triangle) losses. These are

• A) production and consumption distortion effects.
• B) redistribution effects.
• C) revenue effects
• D) efficiency effects.
• E) distortion of incentives.

---

Definitions:

Company's Profits

The financial gain realized when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain the activities.

Interest

The cost of borrowing money or the return earned on an investment, typically expressed as a percentage.

Accounting Period

A specific time period at the end of which an organization prepares financial statements.

Income Statement

A financial statement that shows a company’s revenues and expenses over a specific period, illustrating how the revenues are transformed into net income or loss.