The analysis of a quota implies that .... please select one or more : a) The effect of a quota on trade is the same as a tariff. b) A quota will cause the same deadweight losses as a tariff. c) States should prefer quota instead of tariff. d) A quota increases imports if it is associated with high price elasticity of demand. e) When a quota is applied, the consumer surplus decreases but the producer surplus does not increase because only the state benefits from the quota.
The analysis of a quota implies that .... please select one or more : a) The effect of a quota on trade is the same as a tariff. b) A quota will cause the same deadweight losses as a tariff. c) States should prefer quota instead of tariff. d) A quota increases imports if it is associated with high price elasticity of demand. e) When a quota is applied, the consumer surplus decreases but the producer surplus does not increase because only the state benefits from the quota.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The analysis of a quota implies that ....
please select one or more :
a) The effect of a quota on trade is the same as a tariff.
b) A quota will cause the same
c) States should prefer quota instead of tariff.
d) A quota increases imports if it is associated with high
e) When a quota is applied, the
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