An import quota is similar to a ________ in its effect on ...

[RYAN BANYAN]

An import quota is similar to a ________ in its effect on imports, except that an import quota ________.
 
  A) tariff; does not generate revenue
  B) tariff; generates revenue
  C) subsidy; does not generate revenue
  D) subsidy; generates revenue
  E) tariff; does not result in an efficiency loss.

Question 2

The greater are foreign tradable goods price fluctuations, the more likely that authorities will choose a ________ exchange rate system.
 
  A) floating
  B) fixed
  C) crawling peg
  D) dual

[huda]

Answer to Question 1

A

Answer to Question 2

A