Which of the Following Is FALSE

question 11

Multiple Choice

Which of the following is FALSE?

• A)Consumer surplus increases after a tariff is placed on imports.
• B)Producer surplus increases after a tariff is imposed.
• C)Government revenue increases after a tariff is imposed.
• D)Deadweight losses result from tariffs.

---

Definitions:

Acquisition Differential

The difference between the purchase price of an acquired entity and the net of the identifiable assets acquired plus liabilities assumed.

Undervalued Inventory

A situation where the reported value of inventory is less than its actual market value, possibly affecting financial statements negatively.

Straight Line Amortization

A method of evenly spreading the cost of an intangible asset over its useful life.

Trademark

A sign, term, or expression that is legally recognized or traditionally used to denote a corporation or merchandise.