-A tariff of P_cP_t will: A)have the bigger effect than an import quota of wy on the volume of imports B)have the bigger effect than an import quota of wy on domestic price C)have the same effect as an import quota of wy on the revenues of domestic producers D)have the same effect as an import quota of wy on the revenues of foreign producers E)have the same effect as an import quota of wy on government revenues

Question

Quizplus · Accepted Answer

A tariff and an equivalent import quota both restrict imports to the same level, thus having the same effect on domestic producers' revenues.

-A Tariff of PcPt Will

-A Tariff of P_cP_t Will