Tariffs _______ Consumer Surplus and Import Quotas _______ Consumer Surplus

question 150

Multiple Choice

Tariffs _______ consumer surplus and import quotas _______ consumer surplus.

• A) increase; decrease
• B) increase; increase
• C) decrease; increase
• D) decrease; decrease

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Definitions:

Cost Basis

The initial cost of an asset used for calculating taxes, typically the amount paid to buy it, modified for any changes due to stock splits, dividends, and distributions of returned capital.

Overhaul

A comprehensive renovation or restoration of machinery, equipment, or systems to extend their useful life.

Special Acquisition Fees

Costs directly associated with the acquisition of an asset, business, or investment, which may include legal fees, advisory fees, and transfer charges.

Straight-Line Depreciation

A technique for distributing the expense of an asset uniformly over its lifespan.