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The Net Loss in Welfare from a Quota Is Proportionately

Question 138

Multiple Choice

The net loss in welfare from a quota is proportionately larger than for a tariff because:


A) ​it does not result in government revenue.
B) ​the loss in consumer surplus is greater than the gain to producers and the government.
C) ​it prevents nations from fully realizing their competitive advantage.
D) ​it brings about higher prices and revenues to domestic producers.

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