A tariff ________ a deadweight loss and an import quota ________ a deadweight loss.
A)creates;creates
B)does not create;creates
C)creates;does not create
D)does not create;does not create
E)sometimes creates;always creates

Question

Quizplus · Accepted Answer

Both tariffs and import quotas can lead to inefficiencies in the market by distorting prices and quantities, thereby creating a deadweight loss.

A Tariff ________ a Deadweight Loss and an Import Quota