A tariff-rate quota tends to result in

Question

Quizplus · Accepted Answer

Tariff-rate quotas have multiple effects:
- Revenue effect: the tariff collected on imports within the quota generates revenue for the government.
- Protective effect: the quota restricts the amount of imports outside the quota, protecting domestic producers from foreign competition.
- Consumption effect: the quota may reduce the availability of imported goods outside the quota, leading to higher prices and reduced consumption.

A Tariff-Rate Quota Tends to Result in