In Economic Terms,tariffs Are Preferred to Quotas Because

question 3

Multiple Choice

In economic terms,tariffs are preferred to quotas because

• A)domestic manufacturers gain more producer surplus.
• B)there is less loss of consumer surplus.
• C)tariffs are easier to administer.
• D)quotas create a greater production inefficiency.
• E)given the way quotas are usually administered,tariffs cause a smaller net national welfare loss.

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Definitions:

Underapplied Overhead

Occurs when the allocated overhead cost is less than the actual overhead incurred, leading to a discrepancy in the cost accounting.

Cost of Goods Sold

Represents the direct costs attributable to the production of the goods sold by a company, including the material costs and direct labor costs.

Indirect Labour Costs

Costs related to employees that cannot be directly traced back to a specific product or service, such as supervisory salaries and maintenance labor.

Timesheet

A document or software where employees' working hours are recorded.