Economists frequently urge governments of developing countries to replace import quotas with import tariffs as a first step in a strategy that aims to reduce import protection
What is the reasoning offered by economists to support this recommendation to developing countries?
Quotas yield rents that result in domestic groups wasting real resources fighting over these rents and at the same time quotas generate no public revenues.
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The largest component of M2 is
A) savings deposits. B) currency. C) money market mutual funds. D) travelers checks.
The quantity of money that people choose to hold is
A) positively related to the nominal interest rate. B) positively related to real GDP. C) negatively related to the price level. D) positively related to the availability of ATM machines.
A fixed input is an input that
A. can never be moved from one location to the next. B. is fixed only for some quantities of output. C. cannot be varied in the short-run. D. can never be varied.
The cost of a bachelor's degree in philosophy equals the tuition plus the cost of room and board.
Answer the following statement true (T) or false (F)