A major difference between a tariff and a quota is that a tariff
a. will reduce the ability of foreigners to obtain the purchasing power to buy a nation's export goods, but a quota will not affect the demand of foreigners for the nation's exports.
b. typically generates tax revenue while a quota does not
c. can easily be rescinded but a quota cannot.
d. will reduce imports but a quota generally will not.
b
You might also like to view...
When Sophie, a French citizen, purchases a Dell computer in Paris that was produced in Texas, the purchase is
A) neither an export nor an import for either country. B) a U.S. export and a French import. C) a U.S. import and a French export. D) both a U.S. and a French import.
Economists who are concerned with the effect of fiscal policy on the ability of households and firms to borrow to finance consumption will focus on ________, and economists who want to know whether the government's fiscal policy is sustainable will
focus on ________. A) yearly budget deficits; the federal debt B) the federal debt; yearly budget deficits C) yearly budget deficits; both the federal debt and yearly budget deficits D) the federal debt; both the federal debt and yearly budget deficits
The long-run supply curve of an industry equals the industry's
a. long-run marginal cost curve. b. the horizontal sum of all firms' supply curves at any point in time. c. long-run average cost curve. d. long-run total variable cost curve.
Because the demand for wheat tends to be inelastic, the development of a new, more productive hybrid wheat would tend to
a. increase the total revenue of wheat farmers. b. decrease the total revenue of wheat farmers. c. decrease the demand for wheat. d. decrease the supply of wheat.