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:

Responsiveness

The ability of an organization, individual, or system to quickly and effectively adapt or react to changes, requests, or stimuli.

Customer

An individual or entity that purchases goods or services from a business.

Supply Chain

An arrangement involving various companies, personnel, operations, knowledge, and materials dedicated to transporting a product or service from its origin to the consumer.

Shipper

This is an individual or company that sends or transports goods from one place to another, often involved in logistics and supply chain operations.