Question: When Congress was considering a bill to impose quotas on imports of textiles, shoes, and other products, the late Milton Friedman, a Nobel Prize-winning economist,

When Congress was considering a bill to impose quotas on imports of textiles, shoes, and other products, the late Milton Friedman, a Nobel Prize-winning economist, made the following comment: "The consumer will be forced to spend several extra dollars to subsidize the producers [of these goods] by one dollar. A straight handout would be far cheaper."
a. Why would a quota result in consumers paying much more than domestic producers receive? Where do the other dollars go?
b. What does Friedman mean by a "straight handout"? Why would a straight handout be cheaper than a quota?

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