Quotas and tariffs can:
A) have the same effect on the price of a domestically produced good if they are set appropriately.
B) never have the same effect on imports and import prices.
C) both increase international trade by the same amount if set appropriately.
D) yield the same amount of tax revenue if they are set appropriately.

Question

Quizplus · Accepted Answer

Quotas and tariffs can both restrict the quantity of imports, leading to higher prices for domestically produced goods. If set appropriately, they can have similar effects on domestic prices by limiting foreign competition.

Quotas and Tariffs Can