A major difference between a tariff and a quota is that a tariff
a. will reduce imports, but a quota generally will not.
b. can easily be rescinded, but a quota cannot.
c. will reduce the ability of foreigners to obtain the purchasing power to buy a nation's export goods, but a quota will not affect the foreign demand for the nation's exports.
d. typically generates tax revenue, while a quota does not.
D
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
A) A recent news report stated that the unemployment rate in the country Lithasia had increased from 10.2% to 18.2% from 2003 to 2013 and that the government had adopted strict fiscal measures to expand employment
Would this report be considered microeconomic or macroeconomic analysis? b) Students in a class are discussing how a firm should determine its profit-maximizing output. Would this discussion be considered microeconomic or macroeconomic analysis?
Refer to the scenario above. If the individual places his bet on four pockets, his likelihood of winning is:
A) 1%. B) 4%. C) 8%. D) 10%.
According to your text, what is the significant distinction between the government and the nongovernment sector of society?
A) Government decisions are made by collectives rather than by individuals. B) Government is usually granted the right to coerce adults. C) Government officials pursue the public interest rather than narrow special interests. D) Government takes the long-run view and thus cares for the interests of future generations. E) The government sector is not characterized by competition.