Question

the imposition of tariffs on imports results in deadweight (triangle) losses. these arequestion 13 options:revenue effectsdistortion of incentives.redistribution effects.production and consumption distortion effects.efficiency effects.

Answer 1

Tariffs on imports create production and consumption distortion effects, leading to deadweight losses that reduce overall economic efficiency.

Step-by-step explanation:

The imposition of tariffs on imports results in deadweight (triangle) losses that can be referred to as production and consumption distortion effects. When a tariff is imposed, it raises the price of imported goods, thereby causing consumers to purchase less of the good and domestic producers to supply more, compared to a situation with no trade barriers. This change in production and consumption causes a loss of consumer surplus and can also lead to a loss of producer surplus in the world market, leading to an overall loss of economic efficiency.