The Imposition of Tariffs on Imports Results in Deadweight Welfare

question 41

Multiple Choice

The imposition of tariffs on imports results in deadweight welfare losses for the home economy.These losses consist of the:

• A) Protective effect plus consumption effect
• B) Redistribution effect plus revenue effect
• C) Revenue effect plus protective effect
• D) Consumption effect plus redistribution effect

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Definitions:

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, values, or ideas.

Monotonous

Lacking in variety and interest; tediously unvarying.

Attributonial Bias

A cognitive bias that affects the way we determine who or what is responsible for an event or action, often leading to error in judgment.

Cognitive Dissonance

A psychological discomfort experienced when holding contradictory beliefs or values, or when behavior and beliefs do not align, often leading to a change in beliefs or behaviors to reduce the dissonance.