One big difference between tariffs and quotas is that tariffs:
a. raise the price of a good while quotas lower it.
b. generate tax revenues while quotas do not.
c. stimulate international trade while quotas inhibit it.
d. hurt domestic producers while quotas help them.
e. give the same outcome as free trade while quotas do not.
b
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The above figure shows the U.S. market for chocolate. With international trade, consumer surplus is equal to
A) area A + area B + area C + area D. B) area A. C) area B + area C + area D. D) area C + area D. E) area E.
The effects of tax incentive programs such as IRAs and 401(k) accounts suggest that these government programs designed to increase saving lead to
A) a decrease in the private capital stock. B) decreased labor productivity. C) an increase in the standard of living. D) an increase in the real interest rate.