Question: Why does a quota generate a larger loss to the importing country than a tariff that restricts imports to the same quantity?

Why does a quota generate a larger loss to the importing country than a tariff that restricts imports to the same quantity?

Step by Step Solution

★★★★★

3.29 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

A quota generates a larger loss to the importin... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

648-B-E-M-E (4458).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Q:

Fill in the blanks to make the following statements correct. a. A tariff imposed on the import of leather shoes will cause an ________ in the domestic price. Total quantity of leather shoes sold in...

Q:

The following tables show the domestic supply and demand schedules for bushels of flaxseed (used as an edible oil and a nutrition supplement) in the United States and Kazakhstan, with prices measured...

Q:

1. No Deadweight Loss from Rent Control? Like other fruit flies, Frudo has an expected life span of 37 days. According to Frudo, if my assumptions are correct, a rent-control law implemented today...

Q:

Why does a quota generate a larger loss to the importing country than a tariff that restricts imports to the same quantity?

Q:

18. Which of the following statements about import quotas is true? a. Import quotas are preferred to tariffs because they raise more revenue for the imposing government. b. Voluntary quotas...

Q:

In the Solow growth model investment equals Question 1 options: saving. output. consumption. the marginal product of capital. Question 2 (1 point) In the Solow growth model, it is assumed that a(n)...

Q:

Suppose you work for a US based soybean manufacturing company that supplies soybeans to other countries, among which are China and Nigeria. From your company's sales records, China is responsible for...

Q:

1 ) Under free trade, a digital SLR camera sells for $1000. If the U.S. imported the parts to produce a digital SLR, the free trade price of the parts would be $550. If U.S. producers produce digital...

Q:

The following ranking is in ascending order of home welfare. The ranking is a

Q:

This question applies to the welfare effects of an export quota that is examined in Exploring Further 5.2, available at www.cengage.com/ economics/ Carbaugh. Table 5.6 illustrates the demand and...

Q:

Find the area of a rectangle measuring 6.2cm by 17.5cm. ( A)=(l*w ) Use your rules for performing operations with measurements and use the appropriate unit (s) in the answer.

Q:

Barkley Corp. obtained a trade name in January 2009, incurring legal costs of $15,000. The company amortizes the trade name over eight years. Barkley successfully defended its trade name in January...

Q:

Show that all solutions of the equation y ' - 2 y = 1 + 5 s i n t , y ( 0 ) = y 0 go to either + or - as t , except for a single solution. Find the value of the initial condition y 0 for which the...

Q:

Day Ko Incorporated presented the following comparative income statements for 2007 and 2006: Required a. How did 2007 net sales compare to 2006? b. How did 2007 net earnings compare to 2006? c....

Q:

Assume that the kitty litter industry is perfectly competitive and is presently in long-run equilibrium: a. Draw diagrams for both the market and a typical firm, showing equilibrium price and...

Q:

In a perfectly competitive, increasing cost industry, is the long-run supply curve always flatter than the short-run market supply curve? Explain.

Q:

Assume that the firm shown in the following table produces output using one fixed input and one variable input. a. Complete this table and use it to find this firms short-run profit-maximizing...

Q:

Two cards are drawn at random [without replacement) from a regular deck of 52 cards. what is the probability that the rst card is red and the second carcl is the heart

Q:

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.4 million. The fixed asset will be depreciated straight-line to zero over its...

Q:

The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5...