If a Quota Is Set at the Same Quantity of Imports

question 90

Multiple Choice

If a quota is set at the same quantity of imports that results from a tariff,

• A)the deadweight loss from the tariff is greater than the deadweight loss from the import quota.
• B)the deadweight loss from the tariff equals the deadweight loss from the import quota.
• C)the deadweight loss from the import quota is greater than the deadweight loss from the tariff.
• D)the government tariff revenue is greater than the importers' profit from the import quota.
• E)the government tariff revenue is less than the importers' profit from the import quota.

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Definitions:

Federal Reserve Board

The governing body of the Federal Reserve System, responsible for overseeing the United States' central banking system.

Nation's Economy

The overall economic system of a country, encompassing all activities related to production, consumption, and trade of goods and services within the country.

President

The elected head of a republican state or a leader of an organization, company, or institution, possessing varying levels of authority and responsibility based on context.

Federal Budget Deficit

The financial shortfall when the U.S. government's expenditures exceed its revenues within a fiscal year, leading to borrowing to cover the gap.