Asked by Aline Rugira on May 08, 2024

verifed

Verified

Most economists

A) favor both tariffs and quotas.
B) consider tariffs less of an evil than quotas.
C) consider quotas and tariffs of equal evil.

Tariffs

Taxes imposed by a government on goods and services imported from other countries, used to restrict trade and raise government revenue.

Quotas

Numerical limits imposed on the quantity of a specific good that may be imported.

  • Investigate the repercussions of tariffs, quotas, and other trade hindrances on international commerce and home markets.
  • Investigate the economic justifications supporting and opposing free trade and protectionism.
verifed

Verified Answer

SB
Stephanie BrowningMay 14, 2024
Final Answer :
B
Explanation :
Most economists consider tariffs to be less harmful than quotas. Tariffs work by imposing a tax on imported goods, which can generate revenue for the local government and offer some degree of protection to domestic industries. However, tariffs can also cause consumer prices to rise and reduce competition, leading to inefficiencies in the market. Quotas, on the other hand, restrict the quantity of imports allowed into the country, which can lead to supply shortages, higher prices, and decreased competition. Overall, tariffs are generally viewed as a less restrictive trade policy than quotas.