Tariffs and Import Quotas Both Result in

question 113

Multiple Choice

Tariffs and import quotas both result in

• A)lower levels of domestic production.
• B)the domestic government gaining revenue.
• C)lower levels of imports.
• D)higher levels of domestic consumption.
• E)the elimination of deadweight loss.

---

Definitions:

Interest-Bearing Note

A debt instrument that pays periodic interest payments to the holder until maturity, at which point the principal is repaid.

Bond Debenture

A type of unsecured debt instrument issued by a company to raise long-term funds, without collateral backing.

Corporation Issues Bonds

A financing activity where a corporation raises funds by issuing debt securities, known as bonds, to investors.

Market Rate

The prevailing interest rate available in the marketplace for instruments of similar risk and maturity.