Rank the Following in Ascending Order of an Imposing Small

question 55

Essay

Rank the following in ascending order of an imposing small country's welfare. If there are any two that are equivalent, explain their equivalencies.
I. a tariff of t in a small country resulting in imports of M units
II. a quota of M units of imports, with the government auctioning quota licenses to the highest bidders
III. a quota of M units of imports in which domestic firms engage in rent-seeking activities
IV. an arrangement in which the exporting country voluntarily agrees to limit its exports to M units

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Definitions:

Domestic Production

The total value of all goods and services produced within a country's borders in a given time period.

Imported Shoes

Footwear that is brought into a country from abroad for sale, typically subject to tariffs, quotas, or other trade regulations.

Domestic Price

The price of goods or services within a country's borders, as opposed to their price in the international market.

Domestic Price

The price of goods or services within a country's borders, not influenced by international prices.