Multiple Choice
Which of the following is not a description of what a tariff can achieve in a perfectly competitive market?
A) A tariff can achieve many of the same goals as an import quota.
B) A tariff can create less domestic deadweight loss than a quota if the tariff revenues are redistributed domestically.
C) A tariff can create greater government revenues than a quota.
D) A tariff creates enough government revenue to completely offset the impact of deadweight loss, thereby increasing total surplus.
Correct Answer:

Verified
Correct Answer:
Verified
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