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This Graph Demonstrates the Domestic Demand and Supply for a Good,as

Question 138

Multiple Choice

This graph demonstrates the domestic demand and supply for a good,as well as a quota and the world price for that good. This graph demonstrates the domestic demand and supply for a good,as well as a quota and the world price for that good.   As shown in the graph,when a government imposes a quota,the outcome differs from that of a tariff being imposed in that area: A)  F and H are deadweight loss instead of transferred surplus. B)  E represents tax revenues instead of transferred surplus. C)  FGH is deadweight loss instead of tax revenues. D)  G represents quota rents instead of tax revenues. As shown in the graph,when a government imposes a quota,the outcome differs from that of a tariff being imposed in that area:


A) F and H are deadweight loss instead of transferred surplus.
B) E represents tax revenues instead of transferred surplus.
C) FGH is deadweight loss instead of tax revenues.
D) G represents quota rents instead of tax revenues.

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