Which of the following statements is false?

Question

Quizplus · Accepted Answer

C is false because the revenue the government receives from a tariff is based on the quantity of goods imported times the tariff rate, which can vary with changes in import levels. In contrast, with a quota, the government's revenue can come from auctioning off the quota rights, but this is not inherently tied to the volume of goods imported in the same way as a tariff. Therefore, the statement that the government always receives the same revenue with either a tariff or a quota is incorrect, as these mechanisms can lead to different revenue outcomes depending on how they are implemented and how market conditions change.

Which of the Following Statements Is False