Suppose the Government of an Importing Country Is Considering Imposing

question 3

Multiple Choice

Suppose the government of an importing country is considering imposing either a tariff that would result in imports falling to 1 million units per year or an import quota of 1 million units per year.Which of the following would be true?

• A)The domestic price of the imported good will rise higher with the tariff than with the quota.
• B)Consumers in the importing country will be worse off with the quota than with the tariff.
• C)Domestic producers that compete with the imports will be better off with the tariff than with the quota.
• D)The tariff will increase the revenue of the government of the importing country,while the quota will increase the profits of the foreign exporting firms with quota rights.
• E)Tariffs raise the price of a good but quotas do not.

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Definitions:

Performance Advantages

The superior outcomes or benefits that an individual, team, or organization achieves relative to competitors due to effective strategies, skills, or processes.

Division Of Labor

The allocation of different parts of a manufacturing process or task to different individuals in order to improve efficiency and productivity.

Riskier Decision

A choice made under conditions of uncertainty with the potential for significant loss or gain, often involving a trade-off between potential outcomes.

Self-Managing Teams

Groups of workers who are given the autonomy to plan and execute their work without the direct supervision of management.