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Tariffs vs. Quotas: Assessing Economic Impact and Trade Policies
Chapter 20, Problem 6(choose chapter or problem)
QUESTION:
Why is a quota more detrimental to an economy than a tariff that results in the same level of imports as the quota? What is the net outcome of either tariffs or quotas for the world economy?
Questions & Answers
QUESTION:
Why is a quota more detrimental to an economy than a tariff that results in the same level of imports as the quota? What is the net outcome of either tariffs or quotas for the world economy?
ANSWER:Step 1 of 3
A quota is generally considered more detrimental to an economy than a tariff that results in the same level of imports for several reasons: