Q. Tariffs and quotas on imports tend to involve larger sacrifices in national welfare than would occur under domestic subsidies. This is because, unlike domestic subsidies, import tariffs and quotas: (Solved)
1. Permit less efficient home production
2. Distort choices for domestic consumers
3. Result in higher tax rates for domestic residents
4. Redistribute revenue from domestic producers to consumers
- b. Distort choices for domestic consumers