An Import Quota

question 88

Multiple Choice

An import quota

• A)is preferable to a tariff since an import quota does not create a deadweight loss.
• B)is a tax on imported goods.
• C)reduces the welfare of domestic consumers.
• D)reduces the welfare of domestic producers.

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Definitions:

Protective Tariffs

Levies placed on goods brought into a country to safeguard local businesses against overseas competition by increasing the cost of foreign products.

National Railroad Network

A widespread system of railways covering a nation, facilitating the transportation of goods and passengers across various regions.

Global Economy

The interconnected worldwide economic activities that involve the exchange of goods, services, technology, and capital across borders.

Manufacturing Jobs

Employment in industries that produce goods using labor and machines, typically involving the transformation of raw materials into finished products.