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The Difference Between an Import Quota and a Tariff That

Question 107

Multiple Choice

The difference between an import quota and a tariff that results in the same domestic price is


A) none; they are the same
B) the quantity demanded is higher under the tariff
C) the world price is higher under the quota
D) the tariff revenue goes to the domestic government; quota benefits may go to foreigners
E) none because both quotas and tariffs are illegal

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