An increase in domestic demand for a product protected by a quota results in an increase in producer surplus for domestic firms, while for a tariff it would result in more imports
Indicate whether the statement is true or false
TRUE
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A firm should make an investment only if
A. it is profitable in every year. B. the present value of the profits exceeds the present value of the costs. C. the present value of the revenues exceeds the present value of the costs. D. there are no large losses in the early years.
The "invisible hand" is the price mechanism that guides people's actions in the market.
Answer the following statement true (T) or false (F)
If the price level in Japan increases more rapidly than the price level in Britain, we would expect
A) interest rates in Japan to lower than interest rates in Britain. B) the Japanese yen to depreciate against the British pound. C) the British pound to depreciate against the Japanese yen. D) Japanese productivity to have increased more rapidly than British productivity.
Which of the following flows from the government to the households?
a. Goods and services b. Resources of production c. Taxes d. Government services e. Loans