Vidyalelo
Commerce · Q627

Business Environment and International Business

Graduate and Post Graduate · Commerce · question 627

Q627

The equivalence between the effects of a tariff and a quota which limits imports by the same amount depends on the assumption that (1) There are comparative conditions prevailing abroad (2) There is perfect competitive among quota holders (3) There is free competition within the domestic import competing industry Which of the above statements is correct?

A.
1 alone is correct
Answer
B.
1 and 2 are correct
C.
1 and 2 and 3 are correct
D.
2 and 3 are correct

Answer: Option A

Solution

Answer: Option A
No explanation is given for this question Let's Discuss on Board