Tariffs and import quotas both result in
A)lower levels of domestic production.
B)the domestic government gaining revenue.
C)lower levels of imports.
D)higher levels of domestic consumption.
E)the elimination of deadweight loss.

Question

Quizplus · Accepted Answer

Tariffs and import quotas both directly aim to reduce the quantity of imports by making foreign goods more expensive or by limiting the quantity that can be imported, respectively. This leads to lower levels of imports as domestic consumers either pay higher prices for these goods or cannot obtain them beyond the set quota.

Tariffs and Import Quotas Both Result in