If a Tariff and an Import Quota Lead to Equivalent

question 71

Multiple Choice

If a tariff and an import quota lead to equivalent increases in the domestic price of steel, then

• A) the quota results in efficiency reductions but the tariff does not.
• B) the tariff results in efficiency reductions but the quota does not.
• C) they have identical impacts on how much is produced and consumed.
• D) they have identical impacts on how income is distributed.

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Definitions:

Ammonia

A colorless gas with a characteristic pungent smell, consisting of nitrogen and hydrogen (NH3), used in the manufacture of fertilizers, explosives, and cleaning products.

Acupuncture

A form of alternative medicine and a key component of traditional Chinese medicine involving the insertion of thin needles into the body at specific points to alleviate pain and treat various health conditions.

Phantom Limb Sensations

Feelings that an amputated or missing limb is still attached and functioning, often accompanied by pain or discomfort.

Sensory Input

Information gathered by sensory receptors about internal and external changes.