A Difference Between a Quota and a Tariff Is That

question 121

Multiple Choice

A difference between a quota and a tariff is that

• A)a tariff generates a higher price than does an import quota.
• B)a tariff generates a greater reduction in exports than does an import quota.
• C)an import quota increases profits of domestic producers more than a tariff.
• D)the government collects revenue from a tariff but does not collect revenue from an import quota.
• E)an import quota generates a deadweight loss and a tariff does not.

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Definitions:

Perception

The sorting out, interpretation, analysis, and integration of stimuli involving the sense organs and brain.

Sensation

The physical stimulation of the sense organs.

Stimuli

External factors or events that elicit a response from a sensory organ or organism.

Visual Impairment

A special need that involves significant loss of sight.