Identify the Truthfulness of the Following Statements

question 44

Multiple Choice

Identify the truthfulness of the following statements.
I. In a perfectly competitive market, import quotas and tariffs tend to lead to higher domestic prices and deadweight loss.
II. In a perfectly competitive market, import quotas and tariffs tend to lead to higher domestic prices without the usual deadweight loss that would accompany them.

• A) Both I and II are true.
• B) Both I and II are false.
• C) I is true; II is false.
• D) I is false; II is true.