The welfare loss from an import quota is greater than that of an equivalent tariff because
A) tariff revenues can be used to society's benefit.
B) the loss in consumer surplus is not as large.
C) domestic producers gain more from a quota than from a tariff.
D) tariff revenues represent an additional deadweight loss.
A
Economics
You might also like to view...
Refer to Figure 9.2. A movement from point b to point a could be caused by a(n)
A) increase in government spending. B) decrease in the price of oil. C) increase in taxes. D) a massive crop failure.
Economics
The model in which one firm sets its price first, and others in the industry charge the same price is known as:
a. the Nash equilibrium. b. price leadership. c. a tit for tat strategy. d. prisoners' dilemma.
Economics