The deadweight loss of a tariff isa. not a welfare loss because society as a whole doesn't pay for the loss. b. a welfare loss since it promotes inefficient production. c. not a welfare loss since only business firms suffer revenue losses. d. a welfare loss since it reduces the revenue for the government.

Question

Antony Howe

Business

19 December, 22:48

The deadweight loss of a tariff isa. not a welfare loss because society as a whole doesn't pay for the loss. b. a welfare loss since it promotes inefficient production. c. not a welfare loss since only business firms suffer revenue losses. d. a welfare loss since it reduces the revenue for the government.

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Destiney Hood · Answer 1

Answer:. b. a welfare loss since it promotes inefficient production.

Explanation:

Tariff is tax price that is put on the goods that are imported and usually due to this price customers may end up paying more and instead decide not to import the goods and the countries may decided to also put a higher tax price on their exported goods.

Deadweight loss refers to the imbalance that occurs between supply and demand, when there is no equilibrium between the two.