Tariffs ________ a deadweight loss and import quotas ________ a deadweight loss.
A) create; create
B) do not create; create
C) create; do not create
D) do not create; do not create

Question

Quizplus · Accepted Answer

Tariffs and import quotas both create a deadweight loss because they restrict trade, leading to inefficiencies in the market by reducing the quantity of goods traded below the optimal level.

Tariffs ________ a Deadweight Loss and Import Quotas ________ a Deadweight

Tariffs a Deadweight Loss and Import Quotas a Deadweight