Which of the following is true concerning the impact of tariffs and quotas?
A) Tariffs raise the price of a good but quotas do not.
B) Tariffs reduce consumer and producer surplus whereas quotas reduce domestic consumer surplus and increase domestic producer surplus.
C) Both tariffs and quotas increase the quantity demanded.
D) The revenue resulting from a tariff goes to the government whereas the revenue resulting from a quota goes to whoever is awarded the right to sell the product.
E) The potential welfare loss is greater with tariffs than quotas.
Correct Answer:
Verified
Q108: An effective import quota is one that
Q109: An effective import quota is one that
A)reduces
Q110: Which of the following is not correct
Q111: The difference between an import quota and
Q112: To be effective, an import quota must
A)reduce
Q114: Exhibit 19-6 Q115: Exhibit 19-6 Q116: An effective import quota Q117: Exhibit 19-7 Q118: Exhibit 19-9 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()
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A)lowers the price of![]()
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