Import Quotas and Tariffs Produce Some Common Results

question 81

Multiple Choice

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

• A)Total surplus in the domestic country falls.
• B)Producer surplus in the domestic country increases.
• C)The domestic country experiences a deadweight loss.
• D)Revenue is raised for the domestic government.

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Definitions:

Production Possibilities

The different quantities of goods and services that an economy can produce given its available resources and technology, as represented by a production possibility curve.

Better Technology

Improvements or advancements in technology that increase efficiency or productivity.

Concave Production Possibilities Curve

A graphical representation indicating increasing opportunity costs as more of one good is produced, resulting in a bowed-out shape.

Economic Resources

These are the assets, materials, and inputs used to produce goods and services, including labor, capital, and natural resources.