A Key Difference Between Tariffs and Import Quotas Is That
A key difference between tariffs and import quotas is that
A)consumers are hurt with import quotas but not with tariffs.
B)consumers are hurt with tariffs but not with import quotas.
C)the government receives revenue with a tariff, but the importer makes a profit with an import quota.
D)the government receives revenue with an import quota, but the importer makes a profit with a tariff.
E)domestic producers gain with a tariff and lose with an import quota.
A difference between a quota and a tariff is that
A)a tariff generates a higher price than does an import quota.
B)a tariff generates a greater reduction in exports than does an import quota.
C)an import quota increases profits of domestic producers more than a tariff.
D)the government collects revenue from a tariff but does not collect revenue from an import quota.
E)an import quota creates a social loss and a tariff does not.
A tariff ________ the domestic price of the good and an import quota ________ the domestic price of the good.
E)does not change; does not change
Table 31.3.1 shows the Canadian supply of and demand for widgets. Widgets are available on the world market for $7. If the Canadian government imposes a tariff of $1, the domestic selling price will be ________ and quantity bought will be ________.
A)$6; 48 million
B)$7; 44 million
C)$8; 16 million
D)$8; 24 million
E)$8; 40 million