The Primary Difference Between an Import Tariff and an Import

question 129

Multiple Choice

The primary difference between an import tariff and an import quota is that

• A)tariffs cause prices to rise, but quotas do not
• B)quotas cause prices to rise, but tariffs do not
• C)tariffs result in a net welfare loss, but quotas do not
• D)quotas result in a net welfare loss, but tariffs do not
• E)tariff revenues go to government, but quotas benefit those with the right to sell foreign goods domestically

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Definitions:

Big Box Retailer

A retail store that occupies a large amount of physical space and offers a variety of products to consumers, often part of a chain.

Sunflower Seeds

The seeds of the sunflower plant, used as a food source and for producing oil, known for their nutritional value including healthy fats, protein, fiber, and vitamins.

Lost Sale

A situation where a business misses the opportunity to sell a product or service due to stockouts, mismatched pricing, or other sales process failures.

Markdowns

Reductions from the original or retail price of goods, typically used to clear out inventory and stimulate sales.