A Major Difference Between a Tariff and a Quota Is

question 1

Multiple Choice

A major difference between a tariff and a quota is that a tariff

• A) will reduce imports, but a quota generally will not.
• B) can easily be rescinded, but a quota cannot.
• C) will reduce the ability of foreigners to obtain the purchasing power to buy a nation's export goods, but a quota will not affect the foreign demand for the nation's exports.
• D) typically generates tax revenue, while a quota does not.

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Definitions:

Specific Products

Items or goods that have been distinctly identified and described, usually based on unique characteristics or purposes.

Indirect Materials

Materials used in the production process that are not directly traceable to the final product, such as lubricants and cleaning supplies used in machinery.

Used

Previously owned or utilized by someone before its current owner or application.

Sales Supplies

Items and materials used in the process of selling goods or services.