Tariffs Cause Deadweight Loss Because They Move the Price of an Imported

question 102

True/False

Tariffs cause deadweight loss because they move the price of an imported product closer to the equilibrium price without trade, thus reducing the gains from trade.

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Definitions:

Financing Activities

Transactions and events that affect the equity and long-term liabilities of a company, including issuing shares, repaying loans, and paying dividends.

Cash Dividends

Payments made by a corporation to its shareholders from its profits or reserves, distributed in the form of cash.

Financing Activities

Transactions and business events that involve raising funds to support company operations, investing activities, and shareholder returns, typically through borrowing or issuing equity.

Accounts Payable

The amount a company owes to suppliers or creditors for goods and services purchased on credit, represented as a liability on the balance sheet.