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In 2012 the United States government tightened the import quota on sugar by decreasing th

 In 2012 the United States government tightened the import quota on sugar by decreasing the quantity of sugar that could be imported. Which of the following groups would gain from this change?

I.    U.S. consumers of sugar

II.   U.S. producers of sugar

III.  Foreign producers of sugar

A) I only.

B) I and II only.

C) II only.

D) I and III only.

55) Import quotas ________ the price of imported goods and ________ the quantity consumed in the nation imposing the quota.

A) raise; increase

B) raise; decrease

C) lower; increase

D) lower; decrease

 

56) In 2012 the U.S. government reduced the quantity of sugar that can be imported from other nations. This action ________ the price of sugar in the United States and ________ the quantity consumed in the United States.

A) raised; increased

B) raised; decreased

C) lowered; increased

D) lowered; decreased

 

57) If a government imposes a quota on imports of a popular doll, the price of the doll in the country will ________ and the quantity purchased in the country will ________.

A) rise; increase

B) rise; decrease

C) fall; increase

D) fall; decrease

 

58) A key difference between tariffs and quotas is that

A) consumers are hurt with quotas but not with tariffs.

B) consumers are hurt with tariffs but not with quotas.

C) the government receives revenue with tariffs, but the importer receives the added revenue with quotas.

D) the government receives revenue with quotas, but the importer receives the added revenue with tariffs.

59) A difference between a quota and a tariff is that with a quota the

A) person who has the right to import the good captures an extra gain.

B) exporting government collects an extra gain in the form of revenue.

C) importing government collects an extra gain in the form of revenue.

D) domestic consumers are not harmed.

 

60) A difference between a quota and a tariff is that

A) a tariff generates a higher price than does a quota.

B) a tariff generates a greater reduction in exports than does a quota.

C) a quota increases profits of domestic producers more than does a tariff.

D) the government collects revenues from a tariff but does not collect revenues from a quota.

 

61) A key difference between a quota and a tariff is that

A) a quota has a larger effect on quantity than on price.

B) a tariff has a larger effect on quantity than on price.

C) the government of the importing country gains revenue from a tariff, but the price gap caused by a quota benefits domestic importers.

D) All of the above answers are correct.

 

62) Voluntary export restraints (VERs)

A) do not protect domestic producers.

B) raise revenue for the governments involved.

C) raise the prices paid by domestic consumers.

D) Both answers B and C are correct.

63) A tariff is

A) a government imposed limit on the amount of a good that can be exported from a nation.

B) a government imposed barrier that sets a fixed limit on the amount of a good that can be imported into a nation.

C) a tax on a good imported into a nation.

D) an agreement between governments to limit exports from a nation.

 

64) Who benefits from a tariff on a good?

A) Domestic consumers of the good

B) Foreign governments

C) Domestic producers of the good

D) Foreign producers of the good

 

65) Who benefits from an import quota on a good?

A) Domestic consumers of the good

B) Foreign governments

C) Domestic producers of the good

D) Foreign producers of the good

 

66) Tariffs ________ the domestic price of the good and import quotas ________ the domestic price of the good.

A) lower; lower

B) lower; raise

C) raise; lower

D) raise; raise

67) When does the domestic government gain the MOST revenue?

A) when it imposes a tariff

B) when it imposes an import quota

C) when it negotiates a voluntary export restraint

D) The amount of revenue it gains is the same with a tariff and a voluntary export restraint.

Dec 08 2019 Read more Less More

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