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If a tariff and an import quota lead to equivalent increases in the domestic pri

ID: 1188419 • Letter: I

Question

If a tariff and an import quota lead to equivalent increases in the domestic price of steel, then? The tariff results in efficiency reductions but the quota does not They have different impacts on how income is distributed They have different impacts on how much is produced and consumed The quota results in efficiency reductions but the tariff does not If a tariff and an import quota lead to equivalent increases in the domestic price of steel, then? The tariff results in efficiency reductions but the quota does not They have different impacts on how income is distributed They have different impacts on how much is produced and consumed The quota results in efficiency reductions but the tariff does not The tariff results in efficiency reductions but the quota does not They have different impacts on how income is distributed They have different impacts on how much is produced and consumed The quota results in efficiency reductions but the tariff does not The tariff results in efficiency reductions but the quota does not

Explanation / Answer

They have different impacts on how much is produced and consumed

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