Tariffs and Import Quotas Differ in That

question 85

Multiple Choice

Tariffs and import quotas differ in that

• A)one is a form of trade restriction, while the other is not.
• B)one is legal, while the other is not.
• C)one is a tax, while the other is a limit.
• D)one is imposed by the government, while the other is imposed by the private sector.
• E)one increases imports, while the other decreases imports.

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Definitions:

Cartel

An association of manufacturers or suppliers with the purpose of maintaining prices at a high level and restricting competition.

Collusion

An agreement between rival firms to cooperate in a way that increases their profits, often by fixing prices or limiting production.

Group Profits

The combined earnings of a conglomerate or group of companies under a single parent corporation.

Price Conspiracy

An illegal agreement among competitors to fix prices, control market production, or divide markets to eliminate competition and harm consumers.