The Main Difference Between a Tariff and an Import Quota

question 213

Multiple Choice

The main difference between a tariff and an import quota is that:

• A)an import quota reduces imports more sharply than a tariff.
• B)a tariff will cause higher prices than an import quota.
• C)a tariff generates tax revenue,while an import quota generates rents to the license holders.
• D)a tariff will cause lower prices than an import quota.

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Definitions:

Tension

A force that stretches material or causes it to be pulled apart.

Columnar Joints

Vertically oriented, hexagonal columns of rock that form as a result of the cooling and contraction of volcanic or igneous rocks.

Internal Strain

The deformation within a material or body due to applied stress or pressure.

Displacement

The movement of a body or object from one position to another, often used in geology to describe the shift in position of rock layers along a fault.