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

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay.

Quota Rights

Licenses or permissions issued by a government that allow specific quantities of goods to be imported or exported.

Economic Welfare

The overall well-being and standard of living of people in terms of the quantity and quality of goods and services available to them.