Tariffs and Quotas on Imports Tend to Involve Larger Sacrifices

question 86

Multiple Choice

Tariffs and quotas on imports tend to involve larger sacrifices in national welfare than would occur under domestic subsidies.This is because,unlike domestic subsidies,import tariffs and quotas:

• A) Permit less efficient home production
• B) Distort choices for domestic consumers
• C) Result in higher tax rates for domestic residents
• D) Redistribute revenue from domestic producers to consumers

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Definitions:

Decreases Assets

Refers to any operation or transaction that results in a reduction of the value of assets owned by a business.

Account Receivable

Money owed to a company by customers who have purchased goods or services on credit.

Classified Revenue

Classified revenue involves organizing a company's revenue into distinct categories for detailed financial analysis and reporting.

Accounting Equation

The fundamental principle of accounting that states assets equal liabilities plus owner's equity.