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:

Advertising

The action of calling public attention to products, services, needs, etc., especially by paid announcements in newspapers and magazines, over radio or television, on billboards, etc.

Barriers to Entry

Factors that prevent or hinder companies from entering a specific market or industry, including high startup costs, strict regulations, and established competition, which can protect existing firms from new entrants.

Artificial Differences

Distinctions created or imposed in a situation or between objects that do not naturally or inherently exist.

Horizontal Differentiation

A strategy where products are made different from those of competitors on aspects other than price, such as quality or features, while aimed at satisfying the same basic need.