HomeworkLib
Question

True or False: If the amount of quota imposed by a government and the resultant price...

True or False:

  1. If the amount of quota imposed by a government and the resultant price change are equivalent to the amount of imports and the price change that a specific tariff would have, then the revenue the government collects from the imposition of the quota is the same as the revenue the government would collect if it imposed a specific tariff instead.
  2. Quotas are the commonly used form of trade barriers in the world.
business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

1. If the amount of quota imposed by a government and the resultant price change are equivalent to the amount of imports and the price change that a specific tariff would have, then the revenue the government collects from the imposition of the quota is the same as the revenue the government would collect if it imposed a specific tariff instead.

TRUE.

If the resultant price change for both is same, then the revenue collected would be more or less same.

2. Quotas are the commonly used form of trade barriers in the world - TRUE

Most countries use quotas as trade barriers.

0 0
Add a comment
Know the answer?
Add Answer to:
True or False: If the amount of quota imposed by a government and the resultant price...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • the basic difference between a tariff and quota is that: a. a tariff raises the price...

    the basic difference between a tariff and quota is that: a. a tariff raises the price of the product, whereas with quota, supply is limited to cause a higher price.. b. quota yields revenue to the government whereas tariff does not yeild any revenue. c. tariff reduces the import of the goods with greater certainty that quota as the amount of import restricted by quota depends on the price elasticity of demand for importable. d. quota can be imposed both...

  • Which of the following statements about a tariff and a quota is true? Group of answer...

    Which of the following statements about a tariff and a quota is true? Group of answer choices With a quota the domestic production of the good increases, but not with a tariff. With a tariff the domestic price of the good increases, but not with a quota. With a tariff the government collects revenues, but not with a quota. all of these With a quota the quantity of imports falls, but not with a tariff.

  • Malaysian government has imposed import tariffs on imported photocopy machine from China to protect their local...

    Malaysian government has imposed import tariffs on imported photocopy machine from China to protect their local industry from foreign competition. Given are the two equations of domestic demand and supply of photocopy machine in Malaysia: Demand: Qd= 135 - 5P Supply: Qs= 15 + 15P where Q denotes quantity (in thousand units) and P denotes price (in RM thousand per unit). i) If the world price is RM5 thousands per unit and import tariff of 10% is imposed, determine the...

  • PA P world Tariff $20 $14 P world Quota . D (Thousands) 20 25 35 40...

    PA P world Tariff $20 $14 P world Quota . D (Thousands) 20 25 35 40 Answer the questions below based upon the above diagram. Note that Q is measured in 1,000s. a. With free trade, what is the total value ($) of imports? b. If the government imposes a tariff, derive the change in consumer surplus and producer surplus. c. How much revenue does the government earn from the tariff? d. What is the net national cost of the...

  • QUESTION 17 When we look at tariffs and quotas, 0 a. domestic producers are indifferent between...

    QUESTION 17 When we look at tariffs and quotas, 0 a. domestic producers are indifferent between an equivalent tariff or quota being imposed O b. domestic producers would prefer quotas over tariffs 0 c, domestic producers would prefer tariffs over quotas. O d. foreign producers would prefer tariffs over quotas. QUESTION 18 Which of the following are reasons given for trade barriers? 0 a. interest rate stability O b. National defense Oc.consumer protection O d. natural monopolies QUESTION 19 Which...

  • A country opens to trade, but imposes a tariff on imports. If the world price of...

    A country opens to trade, but imposes a tariff on imports. If the world price of a good is greater than the domestic price, the result will be: Group of answer choices: the government collects tariff revenue. the government collects no tariff revenue. foreign producers benefit. none of the above.

  • Need help on Questions 9 and 10. Is the tariff imposed on the equilibrium price at...

    Need help on Questions 9 and 10. Is the tariff imposed on the equilibrium price at $6 or is it imposed on the World Trade price at $2? Consumer Surplus, Producer Surplus and Net Benefits (Show all your work). Name (Print): Course: Use the following graph for questions 1-15. P $12- Supply SIO $8 S6 54 SZVU Demand $0 10 211 30 40 50 P.S Quantity 1. Estimate an equation for the demand and supply curves shown in the diagram...

  • Discuss the impact of at least 2 instruments of government intervention relevant to the overseas operation of AfterPay Touch. (The 6 Types of Government Intervention) 1. Protectionism - National econ...

    Discuss the impact of at least 2 instruments of government intervention relevant to the overseas operation of AfterPay Touch. (The 6 Types of Government Intervention) 1. Protectionism - National economic policies that restrict free trade. Usually intended to raise revenue or protect domestic industries from foreign competition. 2. Customs - The checkpoint at national ports of entry where officials inspect imported goods and levy tariffs. 3. Tariff - A tax on imports (e.g., autos, textiles) 4. Non-Tariff Trade Barrier -...

  • Paradise is a small country that under free trade imports roses at $2.00 a dozen. Its...

    Paradise is a small country that under free trade imports roses at $2.00 a dozen. Its domestic demand curve and domestic supply curve for roses are as follows:                         D = 100 - 10 P                         S = 10 + 10 P Calculate the equilibrium quantity imported under free trade. Under free trade:       M = _________ If the government imposes a tariff of $1.00 on roses show graphically and calculate the impact of this tariff Graph:              Under tariff: Domestic...

  • Exhibit 30-2 Reference: Ref 18-6 The government is considering imposing either a tariff that will restrict...

    Exhibit 30-2 Reference: Ref 18-6 The government is considering imposing either a tariff that will restrict export supply according to the data in Exhibit 30-2 or a quota that limits imports to 8 units. Which of the following is true? Consumers will prefer the quota. The government will collect more revenue with the quota. Producers will prefer the quota. Imports will be higher with the quota. The equilibrium price will be lower with the quota. Quantity ofQuantity of Imports Demanded...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT