Which of the Following Statements Is False

question 136

Multiple Choice

Which of the following statements is false ?

• A)Consumers receive more consumers' surplus when tariffs do not exist.
• B)Producers receive more producers' surplus when tariffs do not exist.
• C)A tariff results in a net loss to society.
• D)With a tariff, the gains to the winners are less than the losses to the losers.

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Definitions:

Incentives

Rewards or motivations offered to encourage specific behaviors or actions by individuals or organizations.

Price Discrimination

The strategy of selling the same product at different prices to different groups of consumers, based on willingness to pay.

Discount Retailers

Stores that offer products at lower prices by accepting lower margins in return for a high sales volume.

Arbitrage

The practice of taking advantage of price differences between markets to make a profit.