Multiple Choice
The basic difference in the economic effects of a tariff compared with a quota is that a
A) quota reduces domestic consumption of the product, but a tariff does not.
B) tariff allows imports to increase if demand increases, whereas a quota does not.
C) tariff raises product prices, but a quota does not.
D) quota raises product prices, but a tariff does not.
Correct Answer:
Verified
Correct Answer:
Verified
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