(Answered) : The deadweight loss of a tariff is a social loss because it promotes inefficient use of national resources. is a social lo

The deadweight loss of a tariff

is a social loss because it promotes inefficient use of national resources.

is a social loss because it reduces the revenue of the government.

is not a social loss because it merely redistributes revenue from one sector to another.

is not a social loss because it is paid for by rich corporations.

is not a social loss because it aids domestic consumers.

Expert Answer

Dead weight loss shows the inefficiency of the country to maintain equilibrium by increasing tariffs which will also encourage local businesses to increase rates . This creates an unbalanced state where resources are not

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