The difference between the effect of an import quota when quota rights are given away and the effect of a tariff is that
a. only the tariff results in a higher domestic price
b. only the quota decreases the amount of goods imported
c. the decrease in producer surplus is smaller with the quota
d. under a quota, part of the decrease in consumer surplus is redistributed to foreign producers; under a tariff, it is redistributed to the domestic government
e. under a tariff, part of the decrease in consumer surplus is redistributed to foreign producers; under a quota, it is redistributed to the domestic government
D
You might also like to view...
When income taxes are ________ progressive, then output is ________ sensitive to price-level changes
A) more; more B) more; less C) less; more D) less; less
A legal organization of a firm where the business is owned by one individual who makes the business decisions, receives all the profits, and is legally responsible for the debts of the firm is a(n)
A) corporation. B) entrepreneur. C) proprietorship. D) partnership.
Discuss the substitution and real-income effects of a price decrease
What will be an ideal response?
Total Reserves minus vault cash equals
A) bank deposits with the Fed. B) excess reserves. C) required reserves. D) currency in circulation.