Import tariffs and import quotas yield identical protection effects, consumption effects, redistribution effects, and revenue effects.

Question

Quizplus · Accepted Answer

Import tariffs and import quotas may have different effects on the level and allocation of revenues, as well as potential administrative costs associated with their implementation and enforcement. They also differ in the type of trade distortions they create.

Import Tariffs and Import Quotas Yield Identical Protection Effects, Consumption