If politicians decide to proceed with protection, why might economists prefer tariffs to quotas? Explain at least three reasons

What will be an ideal response?

I would expect my students to address the following:
? The greater welfare loss from quotas since quota permits are not generally sold
? The inability of quotas to respond to increases in domestic demand except through higher prices and increased producer surplus. With tariffs, the volume of imports simply adjusts to changing market conditions and market prices are less volatile.
? Tariffs are more transparent and probably less costly to administer.
? Tariffs favor the most efficient foreign producers. They don't arbitrarily limit entry or discourage innovation by foreign firms (but they do for domestic firms, meaning we are creating a situation that rewards foreigners for being innovative and efficient, something not in the long run best interests of domestic firms).