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.

---

Definitions:

Anxiety Disorders

A group of mental health disorders characterized by significant fear or anxiety that interferes with daily activities.

Mood Disorders

Psychological disorders characterized by the elevation or lowering of a person's mood, such as depression or bipolar disorder.

Conduct Disorder

A mental disorder diagnosed in childhood or adolescence characterized by a persistent pattern of disruptive and violent behaviors.

Prevalence

The frequency of a disorder in a population at a given point or period of time.