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Which of the Following Is a Deadweight Cost

Question 36

Multiple Choice

Which of the following is a deadweight cost?


A) The debt burden that developing countries have incurred because of protectionist policies.
B) The difference between the domestic price and the international market price of goods.
C) The amount of money Uruguayan consumers pay for cars that exceeds the profits Uruguayan car manufacturers make because of trade protection.
D) The amount of money it will cost a country's economy to switch from protectionist to liberal trade policies.
E) The price of a good before adding the cost of tariffs or other forms of protection.

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