In the case of a small country, the effects of a quota and a tariff are (almost) identical if
A. the government allocates import licenses directly to the public using a free lottery system.
B. the government allocates licenses for free to importers using a rule or process that involves (almost) no resource cost.
C. the government allocates licenses to importers through application and selection procedures that require the use of substantial resources.
D. the government auctions off import licenses to the highest bidder.
Answer: D
You might also like to view...
If a price decrease of a product significantly raises its revenues, then the absolute price elasticity of demand for that product must be
A) less than one. B) equal to one. C) greater than one. D) an example of unit elasticity.
In which of the following years was inflation in the United States the highest?
a. 1960. b. 1970. c. 1980. d. 1990. e. 2007.