Use the Following to Answer Questions

question 140

Multiple Choice

Use the following to answer questions:
Figure: Costs of Tariffs
-(Figure: Costs of Tariffs) Refer to the figure. From left to right, the first triangle, rectangle, and second triangle in the diagram for analyzing a tariff represent:

• A) unexploited gains from trade due to decreased domestic consumption, wasted resources from increased domestic production, and tariff revenues, respectively.
• B) tariff revenues, wasted resources from increased domestic production, and unexploited gains from trade due to decreased domestic consumption, respectively.
• C) wasted resources from increased domestic production, unexploited gains from trade due to decreased domestic consumption, and tariff revenues, respectively.
• D) wasted resources from increased domestic production, tariff revenues, and unexploited gains from trade due to decreased domestic consumption, respectively.

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Definitions:

Government Fund

A financial allocation from the government aimed at supporting specific projects, sectors, or initiatives, often involving public resources.

Cafeteria-Style Benefits Plans

Allow employees to choose those benefits they really want.

Adverse Selection

A situation in economics and insurance where a party’s lack of information leads to a transaction with another party who has a distinct advantage, often seen in markets for goods like used cars or in health insurance.

Benefit Costs

The expenses incurred by an organization in providing benefits such as health insurance, retirement plans, and leave entitlements to its employees.