Suppose the government of an importing country is considering imposing a tariff that would result in imports falling to 1 million units per year, or an import quota of 1 million units per year. Which of the following best describes the difference in the impact of these alternative trade restrictions?
a. The domestic price of the imported good will rise higher with the tariff than with the quota.
b. Importing-country consumers are made worse off with the quota than with the tariff.
c. Domestic producers that compete with the imports are made better off by the tariff than with the quota.
d. The tariff provides the government of the importing country with revenue, while the quota provides gains to foreign exporting firms with quota rights.
d
You might also like to view...
Which industry has the most problems with moral hazard and its adverse effects on other unknowing people in this industry?
a. retail b. insurance c. office supplies d. education
Which of the following methods of picking stocks is not consistent with fundamental analysis?
a. doing research such as thoroughly reading and analyzing companies' annual reports b. choosing mutual funds that are managed by individuals with good reputations c. viewing individual stock prices as unpredictable d. relying upon the advice of Wall Street analysts
Suppose Julianna reads that Algeria's total spending on goods and services was $370 B in 2013. She also knows that ____
a. Algeria's net profits were $370 B b. Algeria's export sales were $370 B c. Algeria's real GDP was $370 B d. Algeria's value of consumer goods produced was $370 B e. all
Positive externalities occur when an economic activity has a spillover ______ that ______ affect those directly engaged in the activity.
Fill in the blank(s) with the appropriate word(s).