If a tariff and import quota lead to equivalent increases in the domestic price of steel, then ?

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 different impacts on how much is produced and consumed
D. They have different impacts on how income is distributed

Correct Answer: They have different impacts on how income is distributed ✔

Last Updated: June 18, 2019