Suppose an Import-Competing Firm Is Imperfectly Competitive

question 30

Multiple Choice

Suppose an import-competing firm is imperfectly competitive.Replacement of an export tariff with an import quota that yields the same level of imports will ________ market price,________ producer surplus,________ consumer surplus,________ government revenue,and ________ overall domestic national welfare.

• A) increase; increase; decrease; decrease; decrease
• B) have no effect on; have no effect on; have no effect on; decrease; decrease
• C) increase; have no effect on; decrease; decrease; increase
• D) increase; increase; increase; decrease; have an ambiguous effect on
• E) decrease; decrease; increase; decrease; increase

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Definitions:

Seniority-Based Pay

A compensation system where an employee's wage or salary is determined by their length of service in the company.

Guaranteed Wages

A compensation strategy where employees are assured of a minimum amount of income, regardless of work hours or output.

Skill-Based Pay

A compensation system that rewards employees for their range of skills or depth of knowledge, rather than their job title.

Skill-Based Pay

A compensation system where employees are paid based on the skills, knowledge, and abilities they possess rather than their job title or position.