Tariffs and Quotas

question 30

Multiple Choice

Tariffs and quotas:

• A)reduce consumer surplus and increase producer surplus in the importing country.
• B)increase consumer surplus and reduce producer surplus in the importing country.
• C)reduce both consumer surplus and producer surplus in the exporting country.
• D)are imposed when there are differences in the opportunity cost of production across countries.
• E)are imposed when production is subject to economies of scale.