A Ban on Imports,a Tariff,or a Quota Raises the Price

question 125

Multiple Choice

A ban on imports,a tariff,or a quota raises the price to domestic consumers.This means that consumers will buy less of the product at a higher price.The loss associated with this is called

• A) production associated loss.
• B) productive consumption loss.
• C) consumption distortion loss.
• D) consumer misperception loss.

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Definitions:

Economic Welfare

A broad measure that evaluates the standard of living and overall well-being of people within an economy.

Qualitative Improvements

Enhancements to the features, performance, or quality of a product or service that go beyond mere quantitative changes.

Economic Welfare

The overall well-being and standard of living of people in an economy, measured through factors such as income, employment, and access to goods and services.

Psychic Income

The non-monetary satisfaction or pleasure derived from work or non-work activities, such as personal fulfillment, pride, or happiness.