In economic terms, tariffs are preferred to quotas because
A) domestic manufacturers gain more producer surplus.
B) there is less loss of consumer surplus.
C) quotas create a greater production inefficiency.
D) given the way quotas are usually administered, tariffs cause a smaller net national welfare loss.
Question 2 - Three forces played a significant role in preparing Indian policy makers for economic reform. Describe them.
What will be an ideal response?
Question 3 - Which of the following is NOT an expected benefit of reducing nontariff barriers to trade?
A) Fewer firms to compete with
B) Lower prices for many goods
C) Increase in the volume of exports and imports
D) Improved overall economic welfare
Question 4 - Who was the leader of India's economic reforms?
What will be an ideal response?
Question 5 - In the case of a small country, consumer surplus
A) decreases less with a tariff than with an equivalent quota.
B) decreases less with a quota than with an equivalent tariff.
C) decreases the same with tariffs and equivalent quotas.
D) increases more with quotas.
Question 6 - Who was the leader of Chinese economic reforms?
What will be an ideal response?
Question 7 - In which way are tariffs different from quotas?
A) They reduce the volume of imported products.
B) They raise the price of the imported products to consumers.
C) They increase the domestic quantity supplied of the product.
D) They raise government revenue.
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