Answer the following statements true (T) or false (F)

Question

1.Import quotas can yield revenue for the domestic government if it auctions import licenses to the highest bidder in a competitive market.
2.To the extent that domestic importing companies organize as a monopoly buyer, and foreign exporting companies behave as competitive sellers, the importing companies capture the revenue effect of a quota.
3.An import quota tends to reduce the overall welfare of the importing nation by an amount equal to the protective effect, consumption effect, and the portion of the revenue effect that is captured by the domestic government.
4.The sugar import quotas of the U.S. government have tended to increase the market price of sugar, thus reducing the costs to the government of maintaining sugar price supports for domestic growers.
5.During periods of growing demand, a tariff more effectively restricts the volume of imports than an equivalent import quota.

Answer 1

1.False
2.True
3.True
4.True
5.False