Which of the following is false?
A)Tariffs and quotas are identical in their effects, if the protected industry is a monopoly.
B)Quotas tend to breed graft.
C)Welfare effects of quotas depend, in part, on who gets the quota rents.
D)Quotas tend to be administrated in an arbitrary fashion.

Question

Quizplus · Accepted Answer

Tariffs and quotas have different effects even if the protected industry is a monopoly. Tariffs result in higher domestic prices but allow for increased imports under certain conditions, while quotas limit the amount of imports allowed and can result in shortages and higher prices.

Which of the Following Is False