The Difference Between the Effect of an Import Quota When

question 161

Multiple Choice

The difference between the effect of an import quota when quota rights are given away and the effect of a tariff is that

• A)only the tariff results in a higher domestic price
• B)only the quota decreases the amount of goods imported
• C)the decrease in producer surplus is smaller with the quota
• D)under a quota, part of the decrease in consumer surplus is redistributed to foreign producers; under a tariff, it is redistributed to the domestic government
• E)under a tariff, part of the decrease in consumer surplus is redistributed to foreign producers; under a quota, it is redistributed to the domestic government

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Definitions:

Disputing Irrational Beliefs

A cognitive therapeutic technique aimed at challenging and changing irrational thoughts held by clients.

Effective New Philosophy

A novel mindset or approach that proves to be successful in bringing about desired outcomes or solving problems.

Irrational Beliefs

Faulty thinking patterns that are unrealistic or illogical and often cause emotional distress or unhealthy behaviors.

Rational Beliefs

Beliefs that are logically consistent and based on factual evidence, often emphasized in cognitive-behavioral therapies to counter irrational thoughts.