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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