What are the effects of a tariff, and who benefits and who loses when tariffs are imposed? What are the effects of a quota, and who benefits and who loses when quotas are imposed?
A tariff raises the domestic price of the good the tariff is placed on. The higher price benefits domestic producers and the tariff revenue benefits the government, both at the expense of domestic consumers. A quota raises the domestic price of the good with the quota imposed on it. The higher price benefits domestic producers and the foreign producers who are allowed to sell the good at a higher price, both at the expense of the domestic consumer. With a tariff the domestic government does collect additional revenue; with an import quota it does not.
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The part of a commercial bank's reserves that are larger than desired are called
A) additional reserves. B) required reserves. C) excess reserves. D) nonrequired reserves. E) unnecessary reserves.
You run a construction firm with unique capabilities. An architecture firm you have worked for in the past is working on a proposal for a new building that could earn them huge profits. They are considering one of two unique design concepts that either
exploit your capabilities or those of another contractor with a different set of capabilities. They contact you to determine if you could actually get the job done and to get a quote to be included in their bid. The client makes a few changes that will have a small impact on your operations but awards the contract to the architect's plan that includes you. How does the awarding of the contract with changes affect how much your final fee for your services?
Which might be a possible reason a cable television operator want to bundle channels together in packages ("tiers")?
a. delivering many channels to the consumer is not much more costly than delivering a few. b. simplifies the consumer's choice and perhaps lowers administrative costs. c. allows the firm to extract revenue from a consumer even if it does not know exactly which channels the consumer likes the most.. d. all of the above.
The internal rate of return is likely to lead to incorrect decisions.
A. True B. False C. Uncertain