The Welfare Loss from an Import Quota Is Greater Than

question 95

Multiple Choice

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.

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Definitions:

Balance Sheet

A financial statement that presents the assets, liabilities, and shareholders' equity of a company at a specific point in time, showing the financial position.