When individuals and businesses are permitted to trade freely over a larger market area,
a. wages will decline to the level of the poorest country in the region.
b. the monopoly power of business firms will increase.
c. they will be able to produce a larger output and consume a more diverse bundle of goods.
d. businesses will be able to earn higher profits, but the income levels of individuals will decline.
C
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In comparing a tariff and an import quota, we find that:
A. the tariff and quota both generate the same amount of revenue for the U.S. Treasury. B. the tariff generates revenue for the U.S. Treasury, but the quota does not. C. the quota generates revenue for the U.S. Treasury, but the tariff does not. D. neither the tariff nor the quota generates revenue for the U.S. Treasury.