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Which One of the Following Statements About Tariffs and Quotas

Question 32

Multiple Choice

Which one of the following statements about tariffs and quotas is correct?


A) Only the tariff produces revenues for the government.
B) Only the quota will cause domestic production to increase.
C) Only the quota will cause domestic prices paid by consumers to increase.
D) Only the quota will cause the quantity of imports to decrease.
E) Only the tariff will result in higher prices for domestic production.

Correct Answer:

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