Essay
Rank the following in ascending order of an imposing small country's
welfare.If there are any two that are equivalent, explain their equivalencies.
A) a tariff of t in a small country resulting in imports of M units
B) a quota of M units of imports, with the government auctioning quota
licenses to the highest bidders
C) a quota of M units of imports in which domestic firms engage in rent
seeking activities.
D) an arrangement in which the exporting country voluntarily agrees to
limit its exports to M units
Correct Answer:

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