A Major Difference Between Tariffs and Import Quotas Is That

question 245

Multiple Choice

A major difference between tariffs and import quotas is that

• A)tariffs create deadweight losses,but import quotas do not.
• B)tariffs help domestic consumers,and import quotas help domestic producers.
• C)tariffs raise revenue for the government,but import quotas create surplus for those who get the licenses to import.
• D)All of the above are correct.

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Definitions:

February

The second month of the year in the Gregorian calendar, known for being the shortest month.

Raw Material

The basic material from which a product is made, often processed in manufacturing to create a final product.

Production

The process of creating goods and services.

March

A month of the year falling between February and April.