Quotas and tariffs cause relative prices to change, which causes:
A) a transfer of welfare from consumers of imports to domestic producers of import-competing goods in the importing country.
B) a transfer of welfare from consumers to producers of export goods in the exporting country.
C) an effective payment of the quota rent or tariff by the government in the exporting country and import consumers in the importing country.
D) an increase in welfare in the exporting country but a reduction in the importing country.
Correct Answer:
Verified
Q15: An import quota is:
A) a tax on
Q16: Relative to free trade, a quota on
Q17: A binding quota is:
A) a quota set
Q18: The net national welfare decline from a
Q19: Voluntary export restraints are most like:
A) quotas
B)
Q21: Economists often favor tariffs over quotas because:
A)
Q22: "Buy Domestic" regulations:
A) have no trade implications.
B)
Q23: Auction quotas:
A) are frequently used by the
Q24: Rent seeking activities:
A) are likely to reduce
Q25: Smuggling is:
A) criminal activity that causes net
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents