Tariffs and Import Quotas Both Result in

question 22

Multiple Choice

Tariffs and import quotas both result in

• A)lower levels of imports.
• B)the domestic government gaining revenue.
• C)higher levels of domestic consumption.
• D)an increase in demand.
• E)lower levels of domestic production.

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Definitions:

Product Quality

The degree to which a product or service meets the customer's expectations and complies with standards.

Net Present Value

The difference between the present value of cash inflows and outflows over a period, used in capital budgeting to assess the profitability of investments.

Rate Of Return

A measure of the profit or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

Present Value

The immediate worth of a future cash stream or sum, taking into account a defined return rate.