Economics 9708 · AS & A Level · Protectionism

Protectionism — practice question

Which statement correctly describes the effect of a quota and a tariff?

  • AA quota benefits the seller of the imports while a tariff raises government revenue.
  • BA quota decreases the quantity of imports while a tariff leaves the quantity of imports unchanged.
  • CA quota leaves import prices unchanged while a tariff raises the price of imports.
  • DA quota shifts the demand curve for imports while a tariff shifts the supply curve of imports.

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