A quota represents
A) A combination of ad valorem and specific tariffs.
B) A quantitative restriction on the amount of good that may be imported.
C) A compromise between taxpayers and consumers.
D) None of the above.
Answer: B
Economics
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The figure above shows the market for the chemical hydrogen sulfide, the production of which creates an external cost
If the government assesses the marginal external cost correctly, what is the amount of the pollution tax that eliminates the inefficiency? A) $2 per pound B) $3 per pound C) $4 per pound D) $1 per pound E) None of the above answers is correct.
Economics
Total surplus or gains created from trade equal
a. Seller surplus b. Buyer surplus c. The summation of seller and buyer surplus d. Profits earned by a firm
Economics