Economists often favor tariffs over quotas because:
A) quotas can never be "equivalent" to tariffs.
B) quotas tend to become more restrictive of trade than tariffs as demand grows.
C) quotas are more efficient in allocating restricted trade among those who gain from trade.
D) tariffs provide government revenue while quotas do not.
Correct Answer:
Verified
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)
Q20: Quotas and tariffs cause relative prices to
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
Q26: The protection from import competition may take
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