If a Quota Is Set at the Same Quantity of Imports

question 98

Multiple Choice

If a quota is set at the same quantity of imports that results from a tariff in Country A,

• A)the quantity consumed in Country A is less under the quota than under the tariff.
• B)the quantity consumed in Country A is the same under the quota and under the tariff.
• C)the quantity consumed in Country A is more under the quota than under the tariff.
• D)the government tariff revenue is greater than the importers' profit from the import quota.
• E)the government tariff revenue is less than the importers' profit from the import quota.

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