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It Is Always the Case That

Question 61

Multiple Choice

It is always the case that:


A) the deadweight loss will be lower with a quota system than a tariff system.
B) there will be a deadweight loss from imposing tariffs on imports, even though the government may have a need for the revenue from the tariffs.
C) free trade will lead to a deadweight loss.
D) the deadweight loss will be lower with a tariff system than a quota system.

Correct Answer:

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