All of the Following Questions or Statements Regarding Tariffs Are

question 156

Multiple Choice

All of the following questions or statements regarding tariffs are positive except

• A)Economic models can be used to estimate the dollar amounts gained by the winners from the imposition of a tariff.
• B)Economic analysis can decide whether a tariff proposal should be enacted.
• C)Economic analysis can show the size of the loss of economic efficiency from the imposition of a tariff.
• D)Economic models can be used to estimate the dollar amounts lost by the losers from the imposition of a tariff.

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Definitions:

Variable Factors

Elements in production that can change in the short term, such as labor and raw materials, in contrast to fixed factors like capital.

Total Cost

The complete sum of all expenses incurred in the production of goods or services, including both fixed and variable costs.

Output

the total amount of goods or services produced by a company, industry, or economy in a given period.

Average Variable Cost (AVC)

The total variable costs divided by the quantity of output produced, representing the variable cost per unit of output.