Tariffs and quotas support ineﬃcient domestic producers at the expense of consumers, or taxpayers.

Question

Quizplus · Accepted Answer

Tariffs and quotas increase the price of imported goods, making them less competitive against domestic products. This leads to consumers paying higher prices for goods and services and ultimately, inefficient domestic producers are protected from competition at the expense of consumers. Additionally, tariffs and quotas create inefficiencies in the market and lead to a misallocation of resources. Therefore, tariffs and quotas support inefficient domestic producers at the expense of consumers or taxpayers.

Tariffs and Quotas Support Ineﬃcient Domestic Producers at the Expense