The three major differences between tariffs and trade quotas are (1) __________________; (2) ________________; and (3) _________________.
Fill in the blank(s) with the appropriate word(s).
unlike quotas, tariffs raise tax revenues; a tariff affects all foreign sellers equally, but quotas are directed arbitrarily against particular sellers; tariffs may be more easily paid by efficient producers, but quotas may allow relatively inefficient producers to send us their goods, while keeping out those of their more efficient competitors
You might also like to view...
In Egypt, in 1970, the Aswan Dam was completed. By preventing the annual flood of the Nile (thereby providing millions of acres of arable land) and by providing electricity, the dam was expected to raise the living standard of the Egyptian people-and it has. However, it has also led to a rise in the water table which causes Egypt's limestone structures, including the pyramids, to absorb more salt
water and to suffer serious erosion from crystallized salts. Combined with air pollution and traffic vibration, this erosion is turning the pyramids to dust. Economists analyze this type of problem with the concept of a. an externality. b. the antiquity problem. c. a free-rider problem. d. the public good problem. e. the trade-off between equity and output.
In constructing models, economists
a. leave out equations, since equations and models tend to contradict one another. b. ignore the long run, since models are useful only for short-run analysis. c. sometimes make assumptions that are contrary to features of the real world. d. try to include every feature of the economy.