Practice_questions_for_exam__2

Quota rents are a the difference between the domestic

Info icon This preview shows pages 6–8. Sign up to view the full content.

View Full Document Right Arrow Icon
15. Quota rents are: A) the difference between the domestic price and world price following imposition of a quota. B) the extra return to land that occurs following imposition of a quota. C) the difference between imports with no quota and imports with the quota. D) the extra payment to labor that occurs following imposition of a quota. 16. If a quota license is awarded to a domestic firm without an auction, it may generate bribes or lobbying spending to earn this revenue. Economists call this a(n) ____ activity. 17. One way to fairly distribute quotas, while getting revenue for the government, is to: 18. In the 1980s the United States negotiated a voluntary export agreement with Japan in which each Japanese auto producer voluntarily agreed to reduce the number of its automobiles exported to the United States. This voluntary export agreement caused each Japanese auto producer to: Page 6
Image of page 6

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon