The WTO has encouraged nations to replace their import quotas with tariffs. Why?
a. Quotas are more difficult to administer for the customs people.
b. Quotas are more discriminatory.
c. Quotas hurt domestic firms more than tariffs.
d. Quotas result in larger losses than tariffs with equivalent protection on domestic monopolists.
Ans: d. Quotas result in larger losses than tariffs with equivalent protection on domestic monopolists.
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An increase in the demand for American-made goods will
A) decrease the supply of dollars on the foreign exchange market. B) decrease the demand for dollars on the foreign exchange market. C) increase the demand for dollars on the foreign exchange market. D) increase the supply of dollars on the foreign exchange market.
The marginal revenue product is
A) the change in total output resulting from a one-unit change in variable output. B) the change in marginal output resulting from a one-unit change in variable input. C) the change in total revenue resulting from a one-unit change in variable input. D) the change in marginal revenue resulting from a one-unit change in variable input.