The Difference Between an Import Quota and a Tariff That

question 107

Multiple Choice

The difference between an import quota and a tariff that results in the same domestic price is

• A)none; they are the same
• B)the quantity demanded is higher under the tariff
• C)the world price is higher under the quota
• D)the tariff revenue goes to the domestic government; quota benefits may go to foreigners
• E)none because both quotas and tariffs are illegal

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Definitions:

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An aim or desired outcome that a person or organization endeavors to achieve through concerted effort.

Approach-Approach Conflict

A psychological dilemma involving a choice between two positive or desirable options.

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