How does a tariff affect the government's revenue? How does an import quota affect the government's revenue?
What will be an ideal response?
A tariff is a tax on an imported good. Like all taxes, a tariff increases the government's revenue. However, an import quota is quantitative restriction on the amount of a good that can be imported. As such, an import quota has no effect on the government's revenue.
You might also like to view...
In the above table, between what two levels of output does one first observe the law of diminishing returns?
A) 0 and 1000 B) 1000 and 3000 C) 3000 and 4000 D) 4000 and 4500
The production possibilities curve for capital and consumer goods is concave to the origin because: a. of decreasing opportunity costs of production
b. resources are not perfectly adaptable to the production of both goods. c. both consumer goods and capital goods equally contribute to economic growth. d. the level of technology along the frontier is assumed to vary. e. of constant returns to scale.
Which of the following best describes a situation of moral hazard?
a. Sicker people are more likely to buy health insurance. b. Prospective used-car buyers have less information about a particular car than its seller does. c. Drivers with collision insurance drive more recklessly. d. Drivers with collision insurance wear seatbelts less often.
Human capital represents:?
What will be an ideal response?