Which of the Following Statements About Import Quotas Is True

Multiple Choice

Which of the following statements about import quotas is true?

A) Voluntary quotas established by the exporting country reduce the importing country's deadweight loss from the trade restriction.
B) An import quota reduces the price to the domestic consumers.
C) An import quota increases the welfare of domestic producers.
D) Import quotas are preferred to tariffs because they raise more revenue for the imposing government.