A real cost of tariffs and quotas that is difficult to measure is that they
A)encourage rent seeking.
B)shift income from consumers to producers.
C)limit the quantity of imports.
D)reduce wages.

Question

Quizplus · Accepted Answer

Tariffs and quotas can create opportunities for businesses and individuals to seek special treatment or advantages through political connections rather than through productive behavior, leading to rent seeking. The impact of rent seeking is difficult to measure and often leads to inefficiencies in the economy.

A Real Cost of Tariffs and Quotas That Is Difficult