Which of the following best describes the effects of imposing tariffs and quotas?
A) Tariffs raise the price of a good, but quotas do NOT.
B) Tariffs reduce consumer and producer surplus, whereas quotas reduce domestic consumer surplus and increase domestic producer surplus.
C) Both tariffs and quotas increase the quantity demanded.
D) The revenue resulting from a tariff goes to the government, whereas the revenue resulting from a quota goes to whoever is awarded the right to sell the product.
Correct Answer:
Verified
Q60: Q61: Exhibit 19-8 Q62: Exhibit 19-5 Q63: Exhibit 19-5 Q64: Exhibit 19-5 Q66: Exhibit 19-7 Q67: Exhibit 19-8 Q68: What is the difference between the effect Q69: Exhibit 19-5 Q70: Exhibit 19-8 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
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