Describe who benefits and who loses from tariffs and from quotas. What is the major difference between the effects of a quota and the effects of a tariff?
Tariffs and quotas both result in a decrease in consumers' surplus and an increase in producers' surplus. Both produce a net loss to society. The main difference between the effects of a quota and the effects of a tariff is that a tariff directly produces revenue for the government, while a quota does not. A quota increases the total revenue that importers earn.
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If the annual inflation rate in an economy is positive, the purchasing power of a dollar kept in a bank:
A) will decrease over time. B) will remain the same over time. C) will increase over time. D) can increase or decrease depending on the economic growth rate.
Using the scenario above explain how this could have happened?
What will be an ideal response?
The major components of a bond include all of the following except its
A. maturity date. B. face value. C. price. D. coupon rate.
Another name for a shortage is
A) excess quantity supplied. B) excess quantity demanded. C) equilibrium. D) market clearing.