The use of tariffs and quotas for trade protection results in

A) lower prices for domestic consumers.
B) less revenue for government.
C) less efficiency in the economy.
D) less rent-seeking activity.

Question

The use of tariffs and quotas for trade protection results inA) lower prices for domestic consumers.B) less revenue for government.C) less efficiency in the economy.D) less rent-seeking activity.

Zybrea Knight · Accepted Answer

Final Answer : C, Explanation :  Tariffs and quotas restrict the amount of foreign goods entering a country, leading to less competition and higher prices for consumers. This inefficiency arises because resources are not allocated to their most productive uses, as domestic industries are protected from foreign competition, often leading to higher costs and less innovation.

The use of tariffs and quotas for trade protection results in

A) lower prices for domestic consumers.
B) less revenue for government.
C) less efficiency in the economy.
D) less rent-seeking activity.

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