What is likely to happen in a used-car market if the buyers feel that the best they can do is to buy a lemon?
A) The sellers of gems reap high profits.
B) Higher gains from trade are realized.
C) The entire market shuts down.
D) The sellers of lemons earn high profits.
C
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A tariff differs from a quota in that a tariff is
a. levied on imports, whereas a quota is imposed on exports. b. levied on exports, whereas a quota is imposed on imports. c. a tax levied on exports, whereas a quota is a limit on the number of units of a good that can be exported. d. a tax imposed on imports, whereas a quota is an absolute limit to the number of units of a good that can be imported.
(Consider This) Free products offered by firms:
A. may or may not be free to society but are never free to individuals. B. may or may not be free to individuals but are never free to society. C. are produced and distributed at no cost to society. D. are usually items nobody wants.