Question 1
The United States placed a limit on the amount of cars that can be imported into the United States. This is an example of
◦ a tariff.
◦ an export subsidy.
◦ a quota.
◦ dumping.
Question 2
Which of the following is
true?
◦ An import quota generates government revenue.
◦ Tariffs on imports generate government revenue as long as the domestic price is larger than the world price plus the tariff.
◦ Tariffs on imports do not generate government revenue if the domestic price is larger than the world price plus the tariff.
◦ Tariffs on imports never generate government revenue.