A quota differs from a tariff in that quotas:

A. limit the volume of imports more than tariffs.
B. do not generate tax revenues, unlike tariffs.
C. do not increase the price of imports as much as tariffs.
D. reduce consumer welfare more than do tariffs.

Answer: B

Economics

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In the figure above, suppose the original budget line is BD. A fall in the price of a compact disc will

A) rotate the budget line to AD. B) rotate the budget line to CD. C) not move the budget line. D) result in a parallel leftward shift of the budget line.

Economics

Which of the following would be categorized as an implicit cost?

a. not being able to spend your $10,000 savings if you sink the money in your business b. the cost of purchasing supplies for your house-cleaning business c. the cost of purchasing auto insurance for your dry-cleaning delivery business A) a only B) a and c only C) b and c only D) all of the above

Economics