Quotas always create higher efficiency costs than their equivalent tariffs.

Name: Quotas always create higher efficiency costs than their equivalent tariffs.
Brand: Quizplus
Rating: 4.7 (44 reviews)

Question

Quizplus · Accepted Answer

Quotas and tariffs can both distort market efficiency, but it's not accurate to say quotas always create higher efficiency costs than their equivalent tariffs. The actual impact depends on various factors including the size of the quota or tariff, the market structure, and how they are implemented.

Quotas Always Create Higher Efficiency Costs Than Their Equivalent Tariffs