Import Quotas and Tariffs Produce Similar Results

question 126

Multiple Choice

Import quotas and tariffs produce similar results.Which of the following is not one of those results?

• A)The domestic price of the good increases.
• B)Consumer surplus of domestic consumers increases.
• C)Producer surplus of domestic producers increases.
• D)A deadweight loss is experienced by the domestic country.

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Definitions:

Marginal Utility

The additional satisfaction or benefit gained from consuming one more unit of a good or service.

Consumption Bundle

A combination of goods and services that a consumer chooses to consume at a given time.

Budget Constraint

The limit on the consumption patterns of an individual or household based on their income and the prices of goods and services.

Feasible

Capable of being done or achieved; possible within a set of constraints or conditions.