When the world price of the traded good is lower than the ...

[faduma]

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 c. can easily be rescinded but a quota cannot.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.

[choc0chan]

Answer to Question 1

True

Answer to Question 2

b

[faduma]

TYSM

[meganmoser117]

Excellent