What is the overall impact on an economy when import quotas are imposed?
a. Foreign competition is eliminated.
b. Consumers and producers win.
c. Consumers lose, and producers gain.
d. Prices in the affected industry fall.
c. Consumers lose, and producers gain.
You might also like to view...
Although the Federal Reserve had traditionally made discount loans only to commercial banks, in response to the financial crisis in 2008 the Fed made ________ eligible for discount loans as well
A) savings banks B) primary dealers C) the Treasury Department D) mortgage brokers
The legislature is equivalent to a political market because _____
a. legislators are akin to price takers b. policies can be bought and sold c. legislators can be bought and sold d. logrolling allows legislators to trade amongst themselves
Suppose that a tax is placed on books. If the sellers pay the majority of the tax, then we know that the
a. demand is more inelastic than the supply. b. supply is more inelastic than the demand. c. government has required that buyers remit the tax payments. d. government has required that sellers remit the tax payments.
The adverse selection problem is a likely explanation for the fact that
a. some parents use video cameras to monitor the nannies caring for their children. b. some corporate managers were recently sent to prison for enriching themselves at the expense of shareholders. c. people in average health may be discouraged from buying health insurance by the high price. d. gifts can be interpreted as signals.