Would consumers benefit more from a tariff or a quota on imports?
What will be an ideal response?
In both cases, the price of the good is higher than it would be under free trade. The difference lies in who collects the money. In the case of a quota, importers collect the money. In the case of a tariff, the government collects the money, which can then be used to reduce consumers' taxes or to finance public programs. So a tariff is more attractive from a consumer perspective.
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In the classical model, the factors determining output and employment are the factors that ascertain the position(s) of
a. the labor supply curve only. b. the labor demand curve only. c. the aggregate production function. d. both the labor supply curve and the labor demand curve. e. Both c and d
A lottery game pays $500 with .001 probability and $0 otherwise. The variance of the payout is
A) 15.8. B) 249.50. C) 249.75. D) 499.
If the price of cotton increases
a. consumers will buy more cotton clothes. b. consumers will increase their purchases of clothing made of other materials. c. clothing producers will stop making cotton clothes. d. clothing producers will not be able to adjust their output.
If two nominal exchange rates are given as 4 shekel/dollar and 0.711 dinar/dollar, so 1 dollar can buy either 4 shekels or 0.711 dinars, then each Jordanian dinar is worth ________ Israeli shekels, and each shekel is worth ________ dinars.
A. 5.623; 0.178 B. 0.178; 5.623 C. 1.96; 0.51 D. 0.51; 1.96