The Welfare Loss from an Import Quota Is Greater Than

question 95

Multiple Choice

The welfare loss from an import quota is greater than that of an equivalent tariff because

• A) tariff revenues can be used to society's benefit.
• B) the loss in consumer surplus is not as large.
• C) domestic producers gain more from a quota than from a tariff.
• D) tariff revenues represent an additional deadweight loss.

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Definitions:

JIT

Just-In-Time, a production strategy aimed at reducing in-process inventory and associated carrying costs by producing and delivering products just as they are needed.

Service Organizations

Entities that primarily offer intangible goods to consumers through the provision of services instead of physical products.

Competitive Advantage

The attributes that allow an organization to outperform its competitors, such as cost, product differentiation, and market access.

5Ss

A Lean production checklist.