If quota rights accrue to foreigners, then _____.

A) the domestic economy is better off with a quota than with a tariff
B) the domestic economy is worse off with a quota than with a tariff
C) consumer surplus and economic welfare increase
D) production costs decrease
E) part of the decrease in consumer surplus is redistributed to the domestic government


Answer: ?B) the domestic economy is worse off with a quota than with a tariff

Economics

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