Suppose the Indian government decides to protect domestic chocolate makers from foreign producers. Is it better off imposing a tariff or a quota?
举一反三
- Which of the following is not a consequence of subsidies? ( ) A: Subsidies produce revenue for the government. B: Subsidies protect inefficient domestic producers. C: Subsidies make domestic producers vulnerable to foreign competition. D: Subsidies lead to lowered production.
- The principal benefit of tariff protection goes to:（ ） A: Domestic consumers of the good produced B: Domestic producers of the good produced C: Foreign producers of the good produced D: Foreign consumers of the good produced
- Assume the United States adopts a tariff quota on steel in which the quota is set at 2 million tons, the within-quota tariff rate equals 5 percent, and the over-quota tariff rate equals 10 percent. Suppose the U.S. imports 1 million tons of steel. The resulting revenue effect of the tariff quota would accrue to:（ ） A: The U.S. government only B: U.S. importing companies only C: Foreign exporting companies only D: The U.S. government and either U.S. importers or foreign exporters
- A tariff on a product makes: () A: domestic<br/>sellers better off and domestic buyers worse off. B: domestic<br/>sellers worse off and domestic buyers worse off. C: domestic<br/>sellers better off and domestic buyers better off. D: domestic<br/>sellers worse off and domestic buyers better off.
- An import quota protects domestic producers by A: setting a limit on the amount of imports. B: placing a prohibitive tax on imports. C: encouraging competition among domestic producers. D: increasing the total supply of the product.