2. Comparing tariff, quota, and subsidy Aa Aa Which of the following statements regarding the effects of a tariff, quota, and subsidy are correct? Check all that apply. A subsidy involves smaller sacrifices in national welfare than occur under an equivalent tariff or quota. The direct cost of the subsidy is borne by foreign producers. A subsidy yields the same result for domestic producers as does an equivalent tariff or quota, but at a higher cost. Tariffs and quotas distort choices for domestic consumers and cause less efficient home production.
2. Comparing tariff, quota, and subsidy Aa Aa Which of the following statements regarding the effects of a tariff, quota, and subsidy are correct? Check all that apply. A subsidy involves smaller sacrifices in national welfare than occur under an equivalent tariff or quota. The direct cost of the subsidy is borne by foreign producers. A subsidy yields the same result for domestic producers as does an equivalent tariff or quota, but at a higher cost. Tariffs and quotas distort choices for domestic consumers and cause less efficient home production.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: Application: International Trade
Section: Chapter Questions
Problem 7PA
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