Compared to an import quota, an equivalent tariff may provide a less certain amount of protection for home producers since:

Related MCQs

• The home-country government can confiscate the revenue effect of an import quota if
• A(n) __________ is an example of a quota where foreigners hold quota licenses.
• A tariff-rate quota is essentially a
• __________ are profits that accrue to whomever has the right to import the good that is restricted by the quota.
• Suppose the government grants a subsidy to domestic producers of an import-competing good. The subsidy tends to result in deadweight losses for the domestic economy in the form of the:
• A sudden shift from import tariffs to free trade may induce short-term unemployment in:
• A sudden shift from import tariffs to free trade may induce short-term unemployment in:
• The welfare effects of a quota depend to a considerable extent upon
• Governments around the world tend to auction quota licenses
• A tariff: