When a Tariff Is Imposed on a Good,the Difference Between

question 39

Multiple Choice

When a tariff is imposed on a good,the difference between the world price and the domestic price goes to _________,but when a quota limits the importation of the good,the difference between the world price and the domestic price goes to ________.

• A) the government;private individuals or firms
• B) the government;the government
• C) the government;the market
• D) private individuals or firms;the government
• E) private individuals or firms;private individuals or firms

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Definitions:

Marginal Tax Rates

The tax rate applied to the last unit of currency earned, important for understanding the tax implications of earning additional income.

Capital Gains

The profit realized from the sale of a capital asset, like stocks or real estate, when the sale price exceeds the purchase price.

Interest Income

Earnings received from deposit or investment accounts, such as savings accounts, bonds, or loans.