A government can impose an import quota or an equivalent tariff that achieves the same impact on trade. What is the key difference in the welfare outcomes of these two policy options?
A) The domestic quantity supplied is larger under the tariff policy.
B) The domestic price is higher under the tariff policy.
C) The domestic price is lower under the tariff policy.
D) The government captures some of the profits from foreign suppliers through the tariff revenue.
D
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Cyclical unemployment results from
A. technological change. B. the decreasing relative importance of goods and the increasing relative importance of services in the U.S. economy. C. a deficiency of spending on goods and services. D. the everyday dynamics of a free labor market, with workers voluntarily changing jobs.
The formula for the computation of labor productivity is
A) nominal GDP/number of workers. B) real GDP/number of workers. C) nominal GDP/population. D) real GDP/population.
Which of the following is a characteristic of command economies?
A) Rewards to economic agents are based on market prices. B) Coordination of economic agents is automatic. C) It is difficult to incentivize economic agents. D) The invisible hand functions without any restraint.
In terms of price indexes, what is a COLA?
a. A measure of the quality of living b. A consumer price adjustment c. An increase in wages designed to match consumer price increases d. An estimate of gross domestic product e. A measure of producer surplus