Would consumers benefit more from a tariff or a quota on imports?
What will be an ideal response?
In both cases, the price of the good is higher than it would be under free trade. The difference lies in who collects the money. In the case of a quota, importers collect the money. In the case of a tariff, the government collects the money, which can then be used to reduce consumers' taxes or to finance public programs. So a tariff is more attractive from a consumer perspective.
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One reason the U.S. government is sensitive to demands by the elderly is that the elderly have higher voter participation rates than members of other age groups
a. True b. False
If an economist is trying to figure out, in a certain situation, “What would happen if?”, then that economist is working in the area of
a. normative economics. b. positive economics. c. the theory of the firm. d. welfare economics.