Which of the following statements is true?
A) If demand increases in the presence of a tariff, then prices will not increase because the amount of imports will increase.
B) Businesses always prefer tariff protection to quota protection.
C) Exporters never engage in FDI because of quota protection.
D) Quotas have no discernible effect on imports or domestic production.
E) Domestic consumers are unaffected by quotas.
Correct Answer:
Verified
Q30: Like tariffs, quotas generally lead to:
A) an
Q31: If a government auctions its quota:
A) domestic
Q32: To calculate a tariff equivalent for a
Q33: When demand increases for a good subject
Q34: If imports are constrained by a quota
Q36: With a quota, as the domestic demand
Q37: After a quota has been imposed in
Q38: Which of the following statements is false?
A)
Q39: In moving from free trade to a
Q40: Which of the following describes the use
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