A. Distinguish between a tariff and a quota
b. In what ways are tariffs and quotas similar?
c. In what ways are tariffs and quotas different?
d. Why might a foreign producer prefer a quota rather than a tariff?
What will be an ideal response?
a. A tariff is a tax imposed by a government on imports while a quota is a numerical limit imposed by the government on the quantity of a good that can be imported into a country.
b. Compared to unrestricted trade, both a tariff and a quota result in: (
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If a firm sells 5 units of output at $9 per unit and 6 units of output when price is reduced to $8, its marginal revenue from selling the sixth unit is
A) $1. B) $48. C) $45. D) $3.
The currency value of Agraria is set by government decree. Which of the following happens when the government alters the exchange rate so that its currency can buy more units of foreign currency?
A. Reflation B. Devaluation C. Appreciation D. Revaluation
What are the sources of external costs from automobiles?
What will be an ideal response?
Labor productivity is commonly measured as
A. the change in real GDP divided by change in number of workers. B. nominal GDP divided by number of workers. C. real GDP divided by number of workers. D. the number of workers divided by real GDP.