Quotas are a greater threat to competition than tariffs because
A. Quotas allow imports but only at a higher price.
B. Quotas preclude additional imports at any price.
C. Tariffs do not reduce the quantity sold and quotas do.
D. Tariffs are voluntary and quotas are not.
Answer: B
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Refer to Table 12-2. How many pounds of apples should Margie sell to maximize her profit?
A) 300 pounds B) 400 pounds C) This cannot be determined without knowing Margie's total or marginal production costs. D) This can be determined only when all of the values for market price, total revenue, average revenue and marginal revenue are given.
Under conditions of perfect competition, if any one producer increases output,
a. market price rises. b. market price falls. c. market price does not change. d. market price changes unpredictably up or down.
An association of producers such as OPEC that agrees to set common pricing or output goals is referred to as a
A) cartel. B) conglomerate. C) monopoly. D) partnership.
A decrease in the quantity of labor supplied in response to a higher wage would be due to the:
A. substitution effect. B. price effect. C. income effect. D. tax effect.