The Production Component of the Deadweight Loss in a Small

question 22

Multiple Choice

The production component of the deadweight loss in a small nation arises with a tariff because

• A)some domestic resources are transferred from the production of an import-competing commodity to the more efficient use in the production of an exportable good.
• B)some domestic resources are transferred from a more efficient use to less efficient production of an importable commodity
• C)domestic producers are unhappy with the imposition of the tariff,and therefore refuse to produce a higher level of output.
• D)domestic producers allocate fewer resources into the production of the import-competing good than they should based on their costs.

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Definitions:

Company Procedures

Defined processes or methods established by a business for conducting its operations and ensuring consistency and efficiency.

Orientation

A preparatory process used by organizations to acquaint new employees with the company's policies, procedures, and culture.