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Quotas and Tariffs Cause Relative Prices to Change, Which Causes

Question 20

Multiple Choice

Quotas and tariffs cause relative prices to change, which causes:


A) a transfer of welfare from consumers of imports to domestic producers of import-competing goods in the importing country.
B) a transfer of welfare from consumers to producers of export goods in the exporting country.
C) an effective payment of the quota rent or tariff by the government in the exporting country and import consumers in the importing country.
D) an increase in welfare in the exporting country but a reduction in the importing country.

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