2413EconomicsMedium
In a tariff and import quota lead to equivalent increase in the domestic price of steel, then?
AThe tariff results in efficiency reductions but the quota does not
BThey have identical impact on how much is produced and consumed
CThe quota results in efficiency reductions but the tariff does not
DThey have identical impact on how income is distributed
Correct answer
B. They have identical impact on how much is produced and consumed
Explanation
The correct answer is They have identical impact on how much is produced and consumed.