What are the effects of a tariff, and who benefits and who loses when tariffs are imposed? What are the effects of a quota, and who benefits and who loses when quotas are imposed?
A tariff raises the domestic price of the good the tariff is placed on. The higher price benefits domestic producers and the tariff revenue benefits the government, both at the expense of domestic consumers. A quota raises the domestic price of the good with the quota imposed on it. The higher price benefits domestic producers and the foreign producers who are allowed to sell the good at a higher price, both at the expense of the domestic consumer. With a tariff the domestic government does collect additional revenue; with an import quota it does not.
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Which of the following is true?
a. Managed equity funds generally outperform indexed equity mutual funds. b. Managed equity funds merely hold stocks in the same proportion they are represented in a broad stock market index such as the Standard & Poor's 500. c. Indexed equity funds generally have lower management and operating costs than managed funds. d. Indexed equity funds generally engage in more stock trading than managed funds.
Ha-eun just received a significant increase in salary. Considering this, her demand for which of the following would most likely increase?
a. discounted produce b. meals in gourmet restaurants c. frozen foods d. meals in fast-food restaurants