Which of the following is true of import tariffs and quotas?

A) They benefit domestic producers.
B) Domestic consumers gain because they purchase the output of domestic firms.
C) Specialization and comparative advantage are advanced by tariffs and quotas.
D) They tend to expand the volume of world trade.
E) Because they increase the output levels of domestic firms,they tend to lower domestic prices.

Import Tariffs

Taxes imposed by a government on goods imported from other countries to protect domestic industries or to generate revenue.

Quotas

Quotas are limits set by a government on the amount of a particular commodity that can be imported or produced domestically in a certain period, used as a means to regulate trade and support local industries.

Comparative Advantage

The ability of an entity (could be a person, company, or country) to produce a good or service at a lower opportunity cost than another.