Relative to free trade, domestic producers of a good are ________ off with a tariff because of the ________
A) better; higher price and greater quantity sold
B) better; higher price and smaller quantity sold
C) better; lower price and greater quantity sold
D) worse; lower price and smaller quantity sold
E) worse; higher price and greater quantity sold
A
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When the CPI rises ________, the inflation rate is ________
A) rapidly; low B) rapidly; high C) steadily; zero D) slowly; high E) rapidly; either high, low, or zero depending on whether production of output is increasing, decreasing, or not changing.
In economic terms, tariffs are preferred to quotas because
A) domestic manufacturers gain more producer surplus. B) there is less loss of consumer surplus. C) tariffs are easier to administer. D) quotas create a greater production inefficiency. E) given the way quotas are usually administered, tariffs cause a smaller net national welfare loss.