Import Quotas and Tariffs Produce Similar Results

question 126

Multiple Choice

Import quotas and tariffs produce similar results.Which of the following is not one of those results?

• A)The domestic price of the good increases.
• B)Consumer surplus of domestic consumers increases.
• C)Producer surplus of domestic producers increases.
• D)A deadweight loss is experienced by the domestic country.

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Definitions:

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage.

Convertible Bond

a type of bond that can be converted into a predetermined amount of the issuer's equity, typically common stock, at certain times during its life, usually at the discretion of the bondholder.

Stock Value

The market value of a company's shares, determined by supply and demand in the stock market.

Convertible Bonds

Convertible Bonds are a type of corporate bond that holders can convert into a predetermined number of shares of the issuing company's common stock.