A. is less restrictive on a country’s imports than a tariff
B. Is more restrictive on a country’s imports than a tariff
C. has the same restrictive effect on a country’s imports as a tariff
D. will always generate increased tax revenue for the government
Related Mcqs:
- If a tariff and import quota lead to equivalent increases in the domestic price of steel, then ?
A. the quota results in efficiency reductions but the tariff does not
B. The tariff results in efficiency reductions but the quota does not
C. They have different impacts on how much is produced and consumed
D. They have different impacts on how income is distributed - In a tariff and import quota lead to equivalent increase in the domestic price of steel, then ?
A. The quota results in efficiency reductions but the tariff does not
B. The tariff results in efficiency reductions but the quota does not
C. They have identical impact on how much is produced and consumed
D. They have identical impact on how income is distributed - A(n) ________ is n example of a quota where foreigners hold quota licenses ?
A. export quota
B. embargo
C. auction quota
D. tariff quota - The home country government can confiscate the revenue effect of an import quota if ?
A. quota licenses are given to foreign exporting companies
B. quota licenses are auctioned to the highest bidding importing company
C. if quota licenses are given to domestic consumers of the good
D. Both A and C - ________ are profits that accrue to whomever has the right to import the good that is restricted by the quota?
A. quota license
B. quota rents
C. quota prices
D. None of the above - If export contracts are written in terms of foreign currency and import contracts are denominated in domestic currency a depreciation of the dollar during the currency contract period ?
A. should increase the dollar value of exports
B. should not have any effect on the dollar value of U.S imports
C. must increase the balance of trade
D. All of the above - Similar to import tariffs import quotas tend to result in ?
A. higher prices and reduced imports
B. increased government revenue
C. increased consumer surplus
D. decrease producer surplus - During Periods of rising inflation and rising interest rates we expect the demand for real cash to ?
A. rise
B. fall
C. not changes
D. fluctuates - In the Px = export price index, Pm = import price index, Qx = export quantity index,and Qm = import quantity index. Developing countries tend to maintain that their commodity term of trade have declined over the long run suggesting that _________ has declined?
A. Px/Pm
B. Pm/Px
C. (Pm/Px)Qm
D. (Px/Pm)Qx - Suppose that the domestic government allows a specific number of goods to be imported each year, but it does not specify from where the product is shipped or who is permitted to import Such a trade barrier is known as ?
A. an import tariffs
B. a tariff rate quota
C. a selective quota
D. a global quota
