Question 1
Germany placed a limit on the amount of beer that can be imported into Germany. This is an example of
◦ dumping.
◦ an export subsidy.
◦ a tariff.
◦ a quota.
Question 2
Which of the following is
false?
◦ An import quota does not generate 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 generate revenue for the government.