The Imposition of a Tariff on an Imported Good Causes

question 40

Multiple Choice

The imposition of a tariff on an imported good causes consumer surplus

• A)and producer surplus both to increase.
• B)remain the same but decreases the producer surplus.
• C)and producer surplus both to decrease.
• D)to increase and producer surplus to decrease.
• E)to decrease and producer surplus to increase.

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Definitions:

Generally Accepted Accounting Principles

A set of widely adhered to accounting principles and norms for the preparation of financial statements.

Time Period Assumption

An accounting principle that states a business's activities can be divided into specific time periods, such as months, quarters, or years for reporting purposes.

Securities and Exchange Commission

An independent federal agency responsible for protecting investors, maintaining fair and orderly functioning of the securities markets, and facilitating capital formation.

IASB

stands for the International Accounting Standards Board, which is an independent, private-sector body that develops and approves International Financial Reporting Standards (IFRS).