Which of the following is not a short-run impact of imposing quotas on the American industries they seek to protect?
A) government tax revenues increase
B) domestic production and sales by the protected industries increase
C) consumers' real incomes decrease
D) prices of the goods produced by protected industries increase

Question

Quizplus · Accepted Answer

Quotas limit the quantity of goods that can be imported, unlike tariffs, which are taxes on imports. Therefore, imposing quotas does not directly increase government tax revenues; this is a characteristic of tariffs, not quotas.

Which of the Following Is Not a Short-Run Impact of Imposing