In economic terms, tariffs are preferred to quotas because
A) domestic manufacturers gain more producer surplus.
B) there is less loss of consumer surplus.
C) quotas create a greater production inefficiency.
D) given the way quotas are usually administered, tariffs cause a smaller net national welfare loss.
D
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Suppose two companies, Macrosoft and Apricot, and considering whether to develop a new product, a touch-screen t-shirt. The payoffs to each of developing a touch-screen t-shirt depend upon the actions of the other, as shown in the payoff matrix below (the payoffs are given in millions of dollars). 
Suppose Apricot makes its decision first, and then Macrosoft makes its decision after seeing Apricot's choice. What will happen if, before Apricot chooses, Macrosoft announces that it is going to develop a touch-screen t-shirt no matter what Apricot does?
A. Apricot will develop a touch-screen t-shirt, and Macrosoft will not because Macrosoft's threat is not credible. B. Both Apricot and Macrosoft will develop a touch-screen t-shirt because neither company will want to back down. C. Neither Apricot nor Macrosoft will develop a touch-screen t-shirt because they will both realize that they are in a no-win situation. D. Macrosoft will develop a touch-screen t-shirt, and Apricot will not because it's not in Apricot's interest to develop a touch-screen t-shirt if Macrosoft also develops one.
If the demand for a good is price inelastic and the good price is increased, then the marginal revenue (MR) received by the seller will
A) not change. B) decrease. C) increase. D) Cannot be determined from this information
As the federal budget deficit increases,
A. federal borrowing is likely to decrease. B. increased interest obligations become more likely. C. tax cuts become more likely. D. all of the options are correct.
A growing number of cigar manufacturers in the Caribbean and Central America have begun producing and exporting cigars to the U.S. market. How has this affected the equilibrium price and quantity of cigars?
What will be an ideal response?