Question

QUESTION 17 When we look at tariffs and quotas, 0 a. domestic producers are indifferent between an equivalent tariff or quota being imposed O b. domestic producers would prefer quotas over tariffs 0 c, domestic producers would prefer tariffs over quotas. O d. foreign producers would prefer tariffs over quotas. QUESTION 18 Which of the following are reasons given for trade barriers? 0 a. interest rate stability O b. National defense Oc.consumer protection O d. natural monopolies QUESTION 19 Which of the following is a disadvantage of trade restrictions? 0 a. They prevent competition from taking place O b. They prevent inefficient firms from producing ° C. They allow firms to exercise a comparative advantage O d.They allow companies to achieve economies of scale QUESTION 20 What is a trade deficit? O a. the amount by which government spending exceeds tax revenue O b. the amount by which a country's exports exceed its imports 0 c, the amount by which a country's imports exceed its exports O d. the amount by which tax revenue exceeds government spending

Answer 1

17. A
(Domestic producers are indifferent between a tariff and an equivalent quota.)

18. B
(National defense is one of the reasons given for trade barrier.)

19. A
(Trade restrictions removes competition.)

20. C
(Trade deficit occurs when imports exceeds exports.)