Tariffs and Quotas Are One-Size-Fits-All Measures That Work as Tools

question 31

True/False

Tariffs and quotas are one-size-fits-all measures that work as tools to internalize external effects.

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Definitions:

Financial Lease

A lease arrangement where the lessee pays for the use of an asset over a long period, essentially covering its full cost, similar to de facto ownership.

Tax Avoidance

A legal strategy used by individuals and businesses to minimize taxes owed by using deductions, credits, and exemptions within the law.

Bargain Purchase Option

A provision in a lease agreement that allows the lessee to purchase the leased asset at the end of the lease term for a price significantly lower than the expected fair market value.