Which of the following is NOT a short-run impact of imposing quotas on the Canadian industries they seek to protect?

Question

Quizplus · Accepted Answer

Imposing quotas may generate revenue for the government, but it is a long-run impact as the revenue would come from increased tariffs or taxes on the imported goods subject to quotas. In the short run, the government is unlikely to see a direct increase in tax revenues. Therefore, choice D is the correct answer. Prices of goods produced by protected industries may increase as demand exceeds supply due to the reduced competition from imports. Consumers' real incomes decrease as they have to pay more for the same goods. Domestic production and sales by the protected industries increase as they are shielded from foreign competition, creating a temporary boost in output and employment.

Which of the Following Is NOT a Short-Run Impact of Imposing