Tariffs raise the price of imported goods, but quotas rarely do
Indicate whether the statement is true or false
False
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The theory that regulation seeks an efficient use of resources is the
A) social interest theory. B) producer surplus theory. C) consumer surplus theory. D) capture theory. E) deadweight loss theory.
A tax that is imposed by the importing country when an imported good crosses its international boundary is called
A) an import quota. B) dumping. C) a voluntary export restraint. D) a tariff.
Here are three possible definitions of "Compensating Variation": I. the amount a person would be willing to pay to avoid a price increase. II. the amount of additional income needed to allow a person to restore his or her utility back to its initial level after it has been reduced by a price increase. III. the amount of income that a person who experienced a price increase would be willing to pay
to see the price return to its earlier level. Which of these definitions is (are) correct? a. Only I b. I and II c. II and III d. Only III
Appendix: An incentive-compatible revelation mechanism is
a. self-enforcing b. always multi-period c. too complicated to influence decisions d. prevalent in vertically integrated businesses e. not adopted by franchise businesses