A Difference Between a Quota and a Tariff Is That

question 131

Multiple Choice

A difference between a quota and a tariff is that with a quota the

• A) exporting government collects an extra gain in the form of revenue.
• B) importing government collects an extra gain in the form of revenue.
• C) person who has the right to import the good captures an extra gain.
• D) domestic consumers are not harmed.

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Definitions:

Short-Run

A period during which at least one input, such as plant size or capital, is fixed, allowing only some production variables to be adjusted.

Long-Run

A period in economics where all factors of production and costs are variable, and all market adjustments to changes have been completed.

Aggregate Supply

The complete production of goods and services within a country's economy at an established price level over a defined period.

Recession With Inflation

A situation characterized by rising inflation during a period of economic downturn, leading to high unemployment and stagnant demand.