Tariffs _______ a deadweight loss and import quotas _______ a deadweight loss.

Question

Quizplus · Accepted Answer

Both tariffs and import quotas lead to inefficiencies in the market by distorting prices and quantities, which results in a deadweight loss. Tariffs do this by increasing the cost of imported goods, leading to lower consumption and production distortions. Import quotas limit the quantity of goods that can be imported, also causing price distortions and inefficiencies.

Tariffs _______ a Deadweight Loss and Import Quotas _______ a Deadweight

Tariffs _ a Deadweight Loss and Import Quotas _ a Deadweight