In the context of tariff barriers,deadweight costs = _____.
A) total inefficiency - net gain
B) net loss - net gain
C) total inefficiency - net loss
D) total inefficiency - net gain - net loss

Question

In the context of tariff barriers,deadweight costs = _____.
A) total inefficiency - net gain 
B) net loss - net gain 
C) total inefficiency - net loss 
D) total inefficiency - net gain - net loss

Quizplus · Accepted Answer

Deadweight costs in the context of tariff barriers refer to the total inefficiency created by the tariff minus the net gain that results from the tariff. This represents the loss in economic efficiency when the equilibrium outcome is not achievable or not achieved.

In the Context of Tariff Barriers,deadweight Costs = _____