The difference between the effect of an import quota when quota rights are given away and the effect of a tariff is that
A) only the tariff results in a higher domestic price
B) only the quota decreases the amount of goods imported
C) the decrease in producer surplus is smaller with the quota
D) under a quota, part of the decrease in consumer surplus is redistributed to foreign producers; under a tariff, it is redistributed to the domestic government
E) under a tariff, part of the decrease in consumer surplus is redistributed to foreign producers; under a quota, it is redistributed to the domestic government
Correct Answer:
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Q99: The world price of a good is
A)the
Q100: A tax on imports equal to a
Q101: An import quota is a
A)tax on imports
B)legal
Q102: Exhibit 19-8 Q104: As a result of a tariff on Q104: Under a tariff, the domestic government gains Q105: Which pair of groups benefits from an 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![]()