Question

Which of the following are true concerning tariffs and quotas? Consumers benefit from tariffs and quotas. Some domestic producers benefit from tariffs and quotas. Government revenues may increase as a result of enacting tariffs.

Answer 1

Answer:

The correct answers are letters "B" and "C": Some domestic producers benefit from tariffs and quotas; Government revenues may increase as a result of enacting tariffs.

Explanation:

Tariffs and quotas are taxes a country imposes on imports to promote domestic consumption of certain goods. This can be beneficial for those manufacturers and the country because in the case the foreign producers want to still offer their products in that region, they will need to pay higher tariffs, which is translated in more revenue for the country imposing the taxes.