Tariffs are more desirable than quotas if a government wants to increase revenues and reduce benefits to inefficient exporters.

Question

Quizplus · Accepted Answer

Tariffs generate revenue for the government, while quotas limit the amount of imports allowed regardless of their efficiency, potentially benefiting inefficient domestic producers. Therefore, tariffs are a more effective tool for increasing revenue and reducing benefits to inefficient exporters.

Tariffs Are More Desirable Than Quotas If a Government Wants