Deadweight losses from tariffs and quotas in high-income countries

Question

Quizplus · Accepted Answer

Since the mid-1990s, there has been a trend towards reducing trade barriers such as tariffs and quotas among high-income countries. This has resulted in a reduction of deadweight losses from such trade barriers. However, this does not mean that these losses are completely eliminated; they still exist but in a smaller magnitude than before. The other options (A, C, and D) are incorrect because deadweight losses from tariffs and quotas are not insignificant, consumer losses can be greater than deadweight losses, and the protection of jobs cannot always justify the negative effects of these trade barriers.

Deadweight Losses from Tariffs and Quotas in High-Income Countries