Tariffs create deadweight losses and destroy wealth, whereas quotas increase cooperative surplus and create wealth
Indicate whether the statement is true or false
FALSE
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The government's ability to alter expenditures in its economy between imports and exports by enacting policies to change their relative prices is known as
A) expenditure-switching instruments. B) trade drivers. C) tariff tools. D) absorption instruments.
Refer to the table below. What is the probability of selling less than 24 cakes?
The above table shows the probability distribution of cake sales at Busy Betty's Bakery.
A) 0.00
B) 0.10
C) 0.90
D) 0.80
If a price floor is a binding constraint on a market, then
a. the equilibrium price must be above the price floor. b. the quantity demanded must exceed the quantity supplied. c. sellers cannot sell all they want to sell at the price floor. d. buyers cannot buy all they want to buy at the price floor.
As price increases, firms in a perfectly competitive market find that it is:
A. beneficial to produce fewer units of output. B. more difficult to sell their product. C. easier to sell their product. D. beneficial to produce more units of output.