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Llanis Llanis
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6 years ago
The welfare loss of a tariff equals that of an import quota that leads to the same level of imports.
True or False? Provide an explanation.
Textbook 
Microeconomics

Microeconomics


Edition: 6th
Author:
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wrote...
6 years ago
False. In the case of a tariff the government receives revenue which does not reduce welfare. With a quota this amount is often lost to foreign importers.
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