If a tariff and import quota lead to equivalent increases in the domestic price of steel then:
Options:
| a. the quota results in efficiency reductions but the tariff does not b. the tariff results in efficiency reductions but the quota does not c. they have identical impacts on how much is produced and consumed d. they have identical impacts on how income is distributed |
The Correct Answer Is:
c. they have identical impacts on how much is produced and consumed
