Table 21.4Output (Units per Day)Total Cost (Dollars per Day)016130242358478At 4 units of output in Table 21.4, total fixed costs are

A default in the past makes it much more likely that a government will default again, even if the current government is a new regime with every intention of honoring its debts. Why might that be?

What will be an ideal response?

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.