A quota differs from a tariff in that quotas:
A. limit the volume of imports more than tariffs.
B. do not generate tax revenues, unlike tariffs.
C. do not increase the price of imports as much as tariffs.
D. reduce consumer welfare more than do tariffs.
Answer: B
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According to the real business cycle model,
A) increases in aggregate demand do not affect GDP. B) increases in aggregate demand lower the price level. C) increases in aggregate demand lower GDP. D) increases in aggregate demand raise GDP.
What factors lie behind capital inflows to the developing world?
What will be an ideal response?
In the graph shown above, if the government set a price ceiling of $18
A. the price would rise to the equilibrium price.
B. the price would fall to equilibrium price.
C. there would be a temporary shortage, then price would rise to equilibrium price.
D. there would be a permanent shortage, at least until the price ceiling was lifted.
Graphically the intersection of the aggregate demand curve and the short-run aggregate supply line determines:
A. long-run equilibrium. B. exogenous spending. C. potential output. D. short-run equilibrium.