How is a tariff different from a quota?
a. A tariff sets a limit on the quantity of a good that may be imported, while a quota is a tax on an import.
b. A tariff and a quota are different words for the same thing.
c. A tariff is a tax on an import, while a quota set a limit on the quantity of a good that may be imported.
d. None of the above are correct.
c
You might also like to view...
The citizens of Exland, whose currency is the bun, conduct the transactions outlined in the table above
a) What is Exland's current account balance? b) What is Exland's capital account balance? c) What is Exland's official settlement balance? d) What is Exland's net foreign borrowing?
The process of the investment accelerator involves
a. positive feedback from aggregate demand to investment. b. negative feedback from aggregate demand to investment. c. positive feedback from aggregate supply to investment. d. negative feedback from aggregate supply to investment.
Trade theory suggests that increased trade leads to increased wage equality.
Answer the following statement true (T) or false (F)
First, briefly explain why the AD curve is downward sloping in a closed economy. Second, briefly explain why the AD curve is downward sloping in an open economy under fixed exchange rates. And finally, briefly compare the size of the slopes of the two AD curves
What will be an ideal response?