In which of the following cases does an import quota result in a higher welfare loss than a tariff?
A. The quota licenses are allocated through resource-using application procedures.
B. The government auctions the import licenses to the highest bidders.
C. The domestic industry in the importing country is highly competitive.
D. The domestic firms producing an import-competing product set the product's price equal to the marginal cost of producing it.
Answer: A
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Which of the following is NOT a simplifying assumption in the simple Keynesian model?
A) There is no foreign trade. B) Net investment and gross investment are equal. C) All profits are distributed to the business owners. D) Real disposable income equals government purchases of goods and services.
Which of the following situations describing a resource allocation method most resembles the market price method?
A) Food from the Weld County Food Bank is distributed to families in need. B) Lattes are sold at Starbucks. C) Jose works at Intel. His manager tells him what work needs to be completed each month. D) Matt's mother had the rule that whoever cuts the cake chooses their slice last. E) Seventy percent of Austin's chess club wanted to purchase new chess sets and thirty percent did not. The club purchased the sets.
For endangered species, the federal government
A) can only protect the animal on federal property because of common property issues. B) has the right to regulate activities on private land to save the species from extinction. C) turns over the protection of an endangered species to the state authorities where the species lives. D) will capture a pair of animals so that the species does not become extinct.
Biscuits are an inferior good for Aster, then if their price falls, she
a. will definitely buy more biscuits b. will definitely buy fewer biscuits c. may buy more biscuits d. will buy fewer biscuits if the substitution effect is larger than the income effect e. will buy more biscuits if the substitution effect is larger than the income effect