Suppose the Government of an Importing Country Is Considering Imposing

Multiple Choice

Suppose the government of an importing country is considering imposing either a tariff that would result in imports falling to 1 million units per year or an import quota of 1 million units per year.Which of the following would be true in such a case?

A) The U.S.consumers would lose more consumer surplus in the case of tariffs than quotas.
B) The U.S.producers would gain more in the case of quotas than tariffs.
C) The change in quantity demanded would be greater in the case of tariffs than quotas.
D) The tariff revenue would go to U.S.government;quota benefits may go to foreign producers.
E) The U.S.export market would shrink more in the case of quotas than tariffs.