Which of the following methods of restricting trade does NOT create a deadweight loss?
A) a tariff
B) a quota
C) a voluntary export restraint
D) Both answers A and B are correct.
E) None of the above answers is correct because all the methods create a deadweight loss

Question

Quizplus · Accepted Answer

All the methods listed (tariffs, quotas, and voluntary export restraints) create a deadweight loss by distorting market prices and quantities, leading to inefficiencies in the market.

Which of the Following Methods of Restricting Trade Does NOT