Tariffs Result in a Decrease in Consumer Surplus Because

question 114

Multiple Choice

Tariffs result in a decrease in consumer surplus because:

• A)​the price and the quantity consumed of the protected good increases.
• B)​the price and the quantity consumed of the protected good decreases.
• C)​the price of the protected good increases and quantity consumed decreases.
• D)​the price of the protected good decreases and quantity consumed increases.

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Definitions:

GAAP

Generally Accepted Accounting Principles, a common set of accounting rules and standards for financial reporting in the United States.

Pledging

The act of providing assets as security or collateral for a debt.

Assignment

A task or piece of work allocated to someone as part of a job or course of study.

Allowance Method

An accounting method for estimating uncollectible accounts receivable that involves creating a provision for bad debts as a percentage of the accounts receivable.