The Basic Difference in the Economic Effects of a Tariff

question 17

Multiple Choice

The basic difference in the economic effects of a tariff compared with a quota is that a:

• A)quota generates revenue for the government.
• B)tariff generates revenue for the government.
• C)tariff raises product prices, but a quota does not raise product prices.
• D)quota raises product prices, but a tariff does not raise product prices.

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Definitions:

Carbon Dioxide

A clear, scentless gas that is a byproduct of burning carbon-based substances and the respiration process, which is utilized by plants during the process of photosynthesis.

Terrestrial

Terrestrial refers to organisms or environments that are land-based, as opposed to aquatic or marine.

Oceans

Large bodies of saltwater that cover approximately 71% of the Earth's surface and serve as a critical part of the planet's climate system and habitat for marine life.

Biological Magnification

The process by which the concentration of toxic substances increases in each successive link in the food chain.