The Difference Between the Effect of an Import Quota When

question 161

Multiple Choice

The difference between the effect of an import quota when quota rights are given away and the effect of a tariff is that

• A)only the tariff results in a higher domestic price
• B)only the quota decreases the amount of goods imported
• C)the decrease in producer surplus is smaller with the quota
• D)under a quota, part of the decrease in consumer surplus is redistributed to foreign producers; under a tariff, it is redistributed to the domestic government
• E)under a tariff, part of the decrease in consumer surplus is redistributed to foreign producers; under a quota, it is redistributed to the domestic government

---

Definitions:

Modern Societies

Contemporary communities characterized by advanced technological development, urbanization, and complex social structures.

Communal

Pertains to a group or community, focusing on the shared responsibilities, benefits, or possessions of the members of said group.

Sternberg's Theory

A psychological theory proposing that love comprises three components: intimacy, passion, and commitment.

Intimacy Level

The degree of closeness and emotional bond shared between individuals, often reflecting the depth of a personal relationship.