What is the difference between the effect of an import quota when quota rights are given away and the effect of a tariff?
A) The tariff results in a higher domestic price, but the quota does NOT.
B) The quota decreases the amount of goods imported, but the tariff does NOT.
C) Under a quota, part of the decrease in consumer surplus is redistributed to foreign producers, but under a tariff it is redistributed to the domestic government.
D) Under a tariff, part of the decrease in consumer surplus is redistributed to foreign producers, but under a quota it is redistributed to the domestic government.
Correct Answer:
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Q63: Exhibit 19-5 Q64: Exhibit 19-5 Q65: Which of the following best describes the Q66: Exhibit 19-7 Q67: Exhibit 19-8 Q69: Exhibit 19-5 Q70: Exhibit 19-8 Q71: What is the world price of a Q72: Exhibit 19-5 Q73: Exhibit 19-6 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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