If a developer plans to build a skyscraper in a major city ...

[Mr3Hunna]

If a developer plans to build a skyscraper in a major city overshadowing an historic church, could an efficient solution be reached if the church had the legal right to prevent the developer from building in that location? Why or why not?

Question 2

The basic difference between a tariff and quota is that:
 a. quota can be imposed both on imports and exports whereas a tariff can be imposed only on imports.
  b. quota yields revenue to the government whereas tariff does not yield any revenue.
  c. tariff reduces the import of the goods with greater certainty than quota as the amount of import restricted by quota depends on the price elasticity of demand for importable.
  d. tariff is a quantitative restriction on imports whereas quota is an import duty.
  e. a tariff raises the price of the product only in the domestic market whereas with a quota, both domestic and foreign producers receive a higher price.

[Jayson]

Answer to Question 1

Yes, an efficient solution could be reached if the property rights were well established. In this case, if the builder's value of developing the site was greater than the church's value of no development, the builder could potentially compensate the church for an amount that would make both parties better off.

Answer to Question 2

e

[Mr3Hunna]

Thank you

[Jayson]

Happy to help you