For a Country That Is Considering the Adoption of Either

question 61

Multiple Choice

For a country that is considering the adoption of either a tariff or an import quota on a particular good,an important difference is that

• A)an import quota has no effect on consumer surplus,while a tariff decreases consumer surplus.
• B)an import quota has no effect on producer surplus,while a tariff decreases producer surplus.
• C)a tariff raises total surplus,while an import quota does not.
• D)a tariff raises revenue for that country's government,while an import quota does not.

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Definitions:

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