Tariffs and Quotas

question 30

Multiple Choice

Tariffs and quotas:

• A)reduce consumer surplus and increase producer surplus in the importing country.
• B)increase consumer surplus and reduce producer surplus in the importing country.
• C)reduce both consumer surplus and producer surplus in the exporting country.
• D)are imposed when there are differences in the opportunity cost of production across countries.
• E)are imposed when production is subject to economies of scale.

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Definitions:

Legal Contracts

Binding agreements between two or more parties that are enforceable by law.

Record Date

The specific date set by a company to determine the shareholders eligible to receive dividends or other distributions.