________________ refers to the real loss in a small nation's welfare due to inefficiencies in production and distortions in consumption resulting from the imposition of a tariff.
A)Deadweight loss
B)Protection loss
C)Consumer loss
D)Economic loss

Question

Quizplus · Accepted Answer

Deadweight loss refers to the loss in overall economic efficiency that occurs when the benefits of a policy do not outweigh its costs. In the context of a small nation imposing a tariff, deadweight loss would refer to the net welfare loss that comes from distortions in production and consumption resulting from the tariff, which can lead to inefficiencies and make the overall economy less efficient.

________________ Refers to the Real Loss in a Small Nation's