Suppose that domestic personal computer firms complain to Congress that cheap exports are driving them out of business. Congress, worried about job losses, decides to restrict trade, and is considering either atariff or a quota on imported personal computers.
a. Explain which Congress will choose if it wants to restrict trade, yet please importers.
b. Explain which Congress will choose if it wants to use the restriction as a source of revenue.
c. How do tariffs and quotas differ?

Question

Suppose that domestic personal computer firms complain to Congress that cheap exports are driving them out of business. Congress, worried about job losses, decides to restrict trade, and is considering either atariff or a quota on imported personal computers.
a. Explain which Congress will choose if it wants to restrict trade, yet please importers.
 b. Explain which Congress will choose if it wants to use the restriction as a source of revenue. 
 c. How do tariffs and quotas differ?

Quizplus · Accepted Answer

The Answer of Suppose that domestic personal computer firms complain to Congress that cheap exports are driving them out of business. Congress, worried about job losses, decides to restrict trade, and is considering either atariff or a quota on imported personal computers.
a. Explain which Congress will choose if it wants to restrict trade, yet please importers.
 b. Explain which Congress will choose if it wants to use the restriction as a source of revenue. 
 c. How do tariffs and quotas differ?

Suppose That Domestic Personal Computer Firms Complain to Congress That