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.

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Definitions:

Corporations

Legal entities recognized by law as separate from their owners, with rights to enter contracts, own assets, and be liable for debts.

Model Business Corporation Act

A set of statutory provisions designed to provide a standard legal framework for the formation, operation, and dissolution of corporations in the United States.

Preincorporation Subscription

An agreement by an individual to purchase shares in a corporation that is yet to be incorporated, showing early commitment to the entity's future.

Shareholder

An individual or entity that owns shares in a corporation, granting them certain rights, such as the right to vote on corporate matters and receive dividends.