When a tariff or quota on a product is removed, this policy action

Question

Quizplus · Accepted Answer

When a tariff or quota on a product is removed, it benefits consumers of the product as they can now purchase it at a lower price. The removal of these policies can also lead to increased competition and innovation in the market, further benefiting consumers. Domestic producers may face more competition from foreign producers, but overall, the policy change benefits consumers. The government may lose revenue from tariffs, so it is not a direct benefit for them. The nations exporting the product may face some negative effects, but it is not the primary impact of the policy action.

When a Tariff or Quota on a Product Is Removed