Which of the Following Is True Concerning the Impact of Tariffs

question 124

Multiple Choice

Which of the following is true concerning the impact of tariffs and quotas?

• A)Tariffs raise the price of a good but quotas do not.
• B)Tariffs reduce consumer and producer surplus whereas quotas reduce domestic consumer surplus and increase domestic producer surplus.
• C)Both tariffs and quotas increase the quantity demanded.
• D)The revenue resulting from a tariff goes to the government whereas the revenue resulting from a quota goes to whoever is awarded the right to sell the product.
• E)The potential welfare loss is greater with tariffs than quotas.

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Definitions:

Stock Price

The cost of purchasing a share of a particular company, which fluctuates based on market conditions, company performance, and investor sentiment.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments, indicating the company's dividend payment trend over time.

Expected Dividend

The forecasted payment of dividends to shareholders by a company, typically based on its past dividend payments and financial health.

Stock Price

The market price at which shares of a publicly traded company can be bought or sold.