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Tariffs and Import Quotas Have the Following Differing Outcomes

Question 77

Multiple Choice

Tariffs and import quotas have the following differing outcomes:


A) import quotas do not create deadweight losses but tariffs do
B) tariffs help domestic consumers and import quotas help domestic producers
C) tariffs raise revenue for the government but import quotas create a surplus for import licence holders
D) tariffs increase prices but import quotas do not.

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