Suppose the Government of an Importing Country Is Considering Imposing

question 72

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 in such a case?

• A)The U.S.consumers would lose more consumer surplus in the case of tariffs than quotas.
• B)The U.S.producers would gain more in the case of quotas than tariffs.
• C)The change in quantity demanded would be greater in the case of tariffs than quotas.
• D)The tariff revenue would go to U.S.government;quota benefits may go to foreign producers.
• E)The U.S.export market would shrink more in the case of quotas than tariffs.

---

Definitions:

Federal Law

Law that is made by the federal government and applies across all states in the United States.

Tort Law

A legal domain that addresses wrongs or harms caused by one party to another, resulting in legal liability.

Consent

Agreement or permission given by a person with full understanding of the facts and implications of an action or decision.

Battery

A criminal offense involving the unlawful physical acting upon a threat, distinct from assault which is the act of creating apprehension of such contact.