The Difference Between a Tariff and a Quota Is That

question 214

Multiple Choice

The difference between a tariff and a quota is that the

• A)government collects more revenue by imposing a quota.
• B)government collects no revenue by imposing a quota.
• C)producer and consumer prices are equal when a tariff is imposed, but different when a quota is imposed.
• D)producer and consumer prices are equal when a quota is imposed, but different when a tariff is imposed.
• E)tariff is more effective at restricting imports.

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Definitions:

Third-Party Beneficiaries

Individuals who are not directly involved in a contract but stand to benefit from it as stipulated by the contracting parties.

Seller's Warranties

Guarantees made by a seller regarding the condition, functionality, or quality of goods or services.

Liquidated Damages

Damages specified as a term of the contract, before a breach of contract occurs.

Breach of Contract

A violation of any of the agreed-upon terms and conditions of a binding contract.