Answer the following statements true (T) or false (F)
1. Import tariffs benefit the consumers of the product involved.
2. If demand for a product is increasing, an import tariff is less restrictive than an import quota.
3. Export subsidies tend to hurt domestic consumers and benefit the foreign consumers.
4. A voluntary export restraint (VER) is similar to an import quota; except that the former benefits the foreign producers while the latter benefits the domestic producers.
5. Trade protection in most instances transfers wealth from consumers to domestic producers.
1. F
2. T
3. T
4. T
5. T
You might also like to view...
Which of the following is adverse selection?
a. the risk associated with selecting stocks in only a few specific companies b. the risk that a person will become overconfident in his ability to select stocks c. a high-risk person being more likely to apply for insurance d. after obtaining insurance a person having less incentive to be careful
What is the percentage of income received by the upper quintile on line Z?
