How does an import quota differ from an equivalent tariff?
Both the import quota and the tariff raise the domestic price of the good, reduce the welfare of domestic consumers, increase the welfare of domestic producers, and cause deadweight losses. The only difference for the economy is that the tariff raises revenue for the government, while the import quota creates surplus for license holders.
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Job and pay disparity between men and women is explained fully by the job interruption that accompanies childbirth
Indicate whether the statement is true or false
Since 1959 the fraction of persons below the poverty line has fallen
a. True b. False Indicate whether the statement is true or false
Combating recession may require the government to
A. decrease aggregate supply. B. increase aggregate demand. C. decrease aggregate demand. D. decrease government spending.
A difference between the market and the public sector is that
A) competition exists only in the market sector. B) resources are only scarce for the market sector. C) decision making is by majority rule in the public sector but not in the market sector. D) only the public sector produces private goods.