________ are profits that accrue to whomever has the right to import the good that is restricted by the quota?

Related Mcqs:

1. A(n) ________ is n example of a quota where foreigners hold quota licenses ?

   A. export quota
   B. embargo
   C. auction quota
   D. tariff quota

2. 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

3. 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

4. During periods of growing domestic demand, an import quota ?

   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

5. 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

6. Those who argue in favor of import protection generally give the impression that such restricted trade will?

   A. decrease the level of national security
   B. provide benefits to some particular industry
   C. provide benefits to the entire nation
   D. not yield welfare losses for the nation

7. 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

8. Suppose an oligopolist individually maximizes its profits. When calculating profits, if the output effect exceeds the price effect on the marginal unit of production, then the oligopolist ?

   A. Should produce more units
   B. has maximized profits.
   C. is in a Nash equilibrium
   D. Should produce fewer units
   E. should exit the industry.

9. 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

10. To reduce imports, suppose that the government of Norway’s imposes a quota equal to 800 computers, Compared to what occurred under free trade, Norway’s consumers surplus will ________ and its producer surplus will _______ Can you calculate these amounts? Try plotting the information of this table on a sheet of graph paper ?

    A. increase, increase
    B. increase, decrease
    C. decrease, increase
    D. decrease, decrease