Management Notes

Reference Notes for Management

If a tariff and import quota lead to equivalent increases in the domestic price of steel then:

If a tariff and import quota lead to equivalent increases in the domestic price of steel then:

If a tariff and import quota lead to equivalent increases in the domestic price of steel then:

 Options:

a. the quota results in efficiency reductions but the tariff does not
b. the tariff results in efficiency reductions but the quota does not
c. they have identical impacts on how much is produced and consumed
d. they have identical impacts on how income is distributed

The Correct Answer Is:

c. they have identical impacts on how much is produced and consumed

Read more

If a tariff and import quota lead to equivalent increases in the domestic price of steel then:

If a tariff and import quota lead to equivalent increases in the domestic price of steel then:

If a tariff and import quota lead to equivalent increases in the domestic price of steel then:

 Options:

a. the quota results in efficiency reductions but the tariff does not
b. the tariff results in efficiency reductions but the quota does not
c. they have different impacts on how much is produced and consumed
d. they have different impacts on how income is distributed

The Correct Answer Is:

d. they have different impacts on how income is distributed

Read more