One advantage of a tariff over a quota, from the perspective of the nation imposing it, is that a tariff
a. decreases the domestic price
b. increases the foreign price
c. increases the quantity of imports
d. decreases the quality of imports
e. raises tax revenue
E
You might also like to view...
Consider an economy where the growth rate of real GDP is 6% and the annual rate of inflation is 2%. If the quantity theory of money holds, the growth rate of money supply in the economy will be:
A) 6%. B) 2%. C) 8%. D) 4%.
Which of the following is a drawback to having a common currency across countries, as in the European Union?
A) Having a common currency implies that the prices of goods across countries must always be the same, regardless of consumer preferences for goods across countries. B) A common currency increases barriers to trade across countries, reducing opportunities for economic growth. C) With a common currency, individual countries are no longer able to run independent monetary policies. D) None of the above is a drawback to a common currency.
If the quantity of public goods produced were decided by market forces (supply and demand),
a. there would be more goods provided than would be optimal b. there would be fewer goods provided than would be optimal c. the markets would provide the optimal number of goods d. prices would be optimal, but the optimal quantity of goods would not be produced e. the firms producing the public goods would earn excess profit
An increase in the money supply causes the interest rate to fall, investment spending to rise, and aggregate demand to shift right
a. True b. False Indicate whether the statement is true or false