Why do governments generally prefer to impose tariffs over quotas?
What will be an ideal response?
Although both types of barriers of trade will represent protection for local producers, governments receive revenues from tariffs, whereas quotas don't provide any revenues. In particular, small, developing economies often rely on the revenue they receive from import tariffs.
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What are the three major types of unemployment? What are their causes?
Asymmetric information is a situation in which
A. information possessed by one party in a transaction is not known by another party. B. private firms have information that they choose to pass along to the government. C. the government has information that it chooses to pass along to private firms. D. information possessed by one party in a transaction is also known by another party.
Cheap talk works at placing workers in the right job as long as
A) the interests of the worker and the firm coincide. B) all workers want the most demanding jobs regardless of their abilities. C) workers have different ability levels that are unknown to firms. D) firms are not profit maximizers.
If a defined benefit pension cannot, for whatever reason, make good on the promises to retirees, the
A. retirees must sue their former employer. B. pensions are paid by the Pension Guaranty Trust Corporation. C. retirees are out of luck. D. retirees get an extra payment from Social Security.