A Tariff Results in a Higher

question 12

Multiple Choice

A tariff results in a higher:
I. consumer surplus.
II. producer surplus.
III. government revenue.

• A) I and II only
• B) II and III only
• C) I and III only
• D) I, II, and III

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Definitions:

Liability Accounts

Financial obligations or debts of a business that are recorded on its balance sheet.

Asset Accounts

These accounts record resources owned or controlled by a company that have economic value and can provide future benefits.

Debit Side

The left side of a T-account, used for recording increases in assets and expenses or decreases in liabilities, equity, and income.

Credit Side

The right side of an accounting ledger where increases in liabilities, equity, and revenues or decreases in assets and expenses are recorded.