A real cost of tariffs and quotas that is difficult to measure is that they
A)encourage rent seeking.
B)shift income from consumers to producers.
C)limit the quantity of imports.
D)reduce wages.
E)cause deflation.

Question

Quizplus · Accepted Answer

Tariffs and quotas create artificial barriers to trade, leading to rent seeking behavior from domestic producers who now face less competition. This can lead to increased lobbying for protectionist measures and an overall reduction in economic efficiency. The costs associated with rent seeking are difficult to measure and can have long-term negative impacts on the economy.

A Real Cost of Tariffs and Quotas That Is Difficult