The main difference between imposing a tariff and handing out licenses under an import quota is that a tariff increases a. consumer surplus. b. producer surplus. c. international trade. d. government revenue.
Added by Herbert A.
Step 1
A tariff is a tax placed on imported goods by the government, which increases government revenue. On the other hand, handing out licenses under an import quota only gives authorization to import a specific product or goods. Show more…
Show all steps
Your feedback will help us improve your experience
Joram Herman and 50 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
An import quota is an example of a _________.A. tax on imported goods. B. quantity restriction. C. price floor. D. price ceiling. E. tariff. Restricting the quantity of a good that can be imported is likely to mean that the price of that good will ________ rise stay the same fall _________.
Haricharan G.
A trade surplus is _____. A. rarely a result of supply and demand B. an increase in the value of a currency C. the result of a nation exporting more than it imports D. the result of a nation importing more than it exports
Sanchit J.
The Laffer curve illustrates that, in some circumstances, the government can reduce a tax on a good and increase the a. dead weight loss. b. government's tax revenue. c. equilibrium quantity. d. price paid by consumers.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD