Q
In a tariff and import quota lead to equivalent increase in the domestic price of steel, then ?
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A
A. The quota results in efficiency reductions but the tariff does not
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B
B. The tariff results in efficiency reductions but the quota does not
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C
C. They have identical impact on how much is produced and consumed
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D
D. They have identical impact on how income is distributed
Correct Answer:
C. C. They have identical impact on how much is produced and consumed
