Quotas and tariffs both
A) cause a loss of revenue to domestic producers.
B) decrease deadweight loss.
C) restrict foreign trade.
D) lower prices on imported goods.

Question

Quizplus · Accepted Answer

Quotas and tariffs are both measures used to restrict foreign trade. Quotas limit the quantity of goods that can be imported, while tariffs are taxes on imported goods, making them more expensive and less competitive compared to domestic products. Both are tools used by governments to protect domestic industries from foreign competition.

Quotas and Tariffs Both