The welfare loss of a tariff equals that of a import quota that leads to the same level of imports

Indicate whether the statement is true or false

False. In the case of a tariff the government receives revenue which does not reduce welfare. With a quota this amount is often lost to foreign importers.

Economics

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Fill in the blank: Information is a ________ good

A) free B) scarce C) futile D) non-economic

Economics

Differentiate between the income effect and the substitution effect of a fall in the price of a good

What will be an ideal response?

Economics