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Author Question: When the world price of the traded good is lower than the domestic no-trade equilibrium price, free ... (Read 74 times)

faduma

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on: Jun 30, 2018
When the world price of the traded good is lower than the domestic no-trade equilibrium price, free trade causes domestic production to fall and domestic consumption to rise.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

A major difference between a tariff and a quota is that a tariff
 a. will reduce the ability of foreigners to obtain the purchasing power to buy a nation's export goods, but a quota will not affect the demand of foreigners for the nation's exports.
  b. typically generates tax revenue while a quota does not.
 c. can easily be rescinded but a quota cannot.
 d. will reduce imports but a quota generally will not.


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choc0chan

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Reply #1 on: Jun 30, 2018
Answer to Question 1

True

Answer to Question 2

b


faduma

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  • Posts: 528
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

nyrave

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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