Which of the Following Is Not a Description of What

question 80

Multiple Choice

Which of the following is not a description of what a tariff can achieve in a perfectly competitive market?

• A)A tariff can achieve many of the same goals as an import quota.
• B)A tariff can create less domestic deadweight loss than a quota if the tariff revenues are redistributed domestically.
• C)A tariff can create greater government revenues than a quota.
• D)A tariff creates enough government revenue to completely offset the impact of deadweight loss, thereby increasing total surplus.

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Definitions:

Common Stock

Equity security representing ownership interest in a corporation, with holders entitled to vote at company meetings and receive dividends.

Distribution

The process of delivering products or services from the production or service delivery point to the end consumer.

Statement of Stockholders' Equity

A financial document that outlines the changes in the equity section of the balance sheet over a reporting period.

GAAP

Stands for Generally Accepted Accounting Principles, which are a common set of accounting principles, standards, and procedures that companies must follow when compiling their financial statements.