The welfare loss of a tariff equals that of an import quota that leads to the same level of imports
Indicate whether the statement is true or false
False. In the case of a tariff the government receives revenue which does not reduce welfare. With a quota this amount is often lost to foreign importers.
You might also like to view...
How can incomes become more unequally distributed within countries and less unequally distributed across countries?
What will be an ideal response?
The explanations for the slopes of the aggregate demand and short-run aggregate supply curves are the same as the explanations for the slopes of demand and supply curves for specific goods and services
a. True b. False Indicate whether the statement is true or false
Refer to the following table to answer the question. Supply shown by the table is:PriceQuantity Demanded$6.0080$8.0090$10.00100$12.00110$14.00120
A. unit elastic. B. elastic. C. inelastic. D. changing as price changes.
John is trying to decide how to divide his time between his job as a stocker in the local grocery store, which pays $7 per hour for as many hours as he chooses to work, and cleaning windows for the businesses downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, and the number of windows he can clean depends on how many hours he spends cleaning in a day, as shown in the accompanying table.Time cleaning windows (hours/day)Total number of windows cleaned0017211314416517 John's benefit from his first hour cleaning windows is:
A. $2. B. $7 C. $14 D. $18