The Change in the Economic Welfare of a Country Associated

question 71

Multiple Choice

The change in the economic welfare of a country associated with an increase in a tariff equals

• A) efficiency loss - terms of trade gain.
• B) efficiency gain - terms of trade loss.
• C) efficiency loss + tax revenue gain.
• D) efficiency loss + tax revenue gain + terms of trade gain.
• E) efficiency loss - tax revenue gain.

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Definitions:

Installments

A method of payment where the total cost is divided into smaller, periodic payments over a set period of time.

Small Business Administration

A U.S. government agency that provides support, resources, and loans to small businesses.

Loan

Money borrowed that is expected to be paid back with interest, typically used for larger purchases or to bridge temporary financial gaps.

Cash-flow Method

A financial analysis approach that evaluates an investment's profit or loss by considering the timing and amount of cash inflows and outflows.