E) increase; increase; decrease; have an ambiguous effect on 10) An import quota

Question

E) increase; increase; decrease; have an ambiguous effect on 10) An import quota will government revenue, and A) increase; decrease; increase; have an ambiguous effect on B) increase; decrease; decrease; decrease C) increase; decrease; have no effect on; have an ambiguous effect on D) increase; decrease; have no effeet on; decrease E) increase; increase; decrease; have an ambiguous effect on producer surplus, overall domestic national welfare in large economic. consumer surplus, 10) An tariff wil government revenue, and A) increase; decrease; increase; have an ambiguous effect on B) increase; decrease; decrease; decrease C) increase; decrease; have no effect on; have an ambiguous effect on D) increase; decrease; have no effect on; decrease E) increase; increase; decrease; have an ambiguous effect on producer surplus, consumer surplus, overall domestic national welfare in small economic. producer surplus, consumer surplus, 10) An tariff will government revenue, and A) increase; decrease; increase; have an ambiguous effect on B) increase; decrease; decrease, decrease C) increase; decrease; have no effect on; have an ambiguous effect on D) increase; decrease; have no effect on; decrease E) increase; increase; decrease; have an ambiguous effect on overall domestic national welfare in large economic

Explanation / Answer

First question is answered below:

10.

Correct option: (a)

Reason: Imposition of import quota or quantity control on imports will increase producer surplus as imports will fall, consumer surplus will increase as quantity of imports falls, government revenue will increase from quota rent while overall national welfare will have ambiguous effect as some producers are benefitted while consumers are at loss.

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.