Suppose a government is considering imposing either a tariff or a quota on imported grain, and either policy will result in exactly 750 tons of grain being imported. How do these policies differ?
A. The quota will generate revenue for the firms that hold import licenses, while the tariff will generate revenue for the government.
B. Domestic production will be higher with the quota than with the tariff.
C. The price of grain under the quota will be higher than the price under the tariff.
D. The price of grain under the tariff will be higher than the price under the quota.
Answer: A
You might also like to view...
The use of a directive interview makes it more difficult for supervisors to compare one applicant's background to another.
Indicate whether the statement is true or false.
If government imposes a price ceiling on a good that is below the market equilibrium price
A) a surplus will develop. B) a shortage will develop. C) producers will reduce their sales price. D) consumers will reduce their demand for the good.
The actual rate of unemployment will be greater than the natural rate of unemployment when
a. the actual output is less than the economy's potential output. b. the actual output is greater than the economy's potential output. c. the actual output is equal to the economy's potential output. d. the inflation rate has been relatively constant for several years.
The demand curve confronting a nondiscriminating pure monopolist is:
A. more elastic than the demand curve confronting a competitive firm. B. derived by vertically summing the individual demand curves competitors. C. the same as the industry's demand curve. D. horizontal.