The Imposition of Tariffs on Imports Results in Deadweight (Triangle)

question 14

Multiple Choice

The imposition of tariffs on imports results in deadweight (triangle) losses. These are

• A) production and consumption distortion effects.
• B) redistribution effects.
• C) revenue effects
• D) efficiency effects.
• E) distortion of incentives.

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in net income or loss.

Net Income

The concluding profit margin of a company after deducting all operational expenditures and taxes from its income.

Revenues

Income that a company receives from its normal business activities, usually from the sale of goods and services to customers.

Beginning Inventory

The amount of goods presented for buying at the initial stage of an accounting term.