What Is the Difference Between a Tariff and a Trade

question 153

Multiple Choice

What is the difference between a tariff and a trade quota?

• A) A tariff is a tax on imported goods, and a trade quota is a quantity restriction on imported goods.
• B) A tariff is a cash payment to domestic exporters, and a trade quota restricts the quantity of domestically produced goods foreigners can buy.
• C) A tariff is a lump-sum tax on imported goods, and a trade quota is a sales tax on imported goods.
• D) A tariff is a quantity trade restriction on imported goods, and a trade quota is a quantity tax on imported goods.

---

Definitions:

Profit-Sharing Plan

A company program that gives employees a share in the profits, typically in the form of bonuses or stock options.

Annual Profits

This term refers to the total revenue from all sources within the year minus the total expenses, costs, and taxes needed to sustain the business.

Executives

Individuals who are in charge of managing and making key decisions within an organization.

Supervisors

Individuals in charge of overseeing and directing the work of others, typically in a workplace setting.