A Tariff Differs from a Quota in That a Tariff

question 39

Multiple Choice

A tariff differs from a quota in that a tariff is:

• A) a tax imposed on imports, whereas a quota is an absolute limit to the number of units of a good that can be imported.
• B) a tax levied on exports, whereas a quota is a limit on the number of units of a good that can be exported.
• C) levied on exports, whereas a quota is imposed on imports.
• D) levied on imports, whereas a quota is imposed on exports.

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Definitions:

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures.

Consumers

Individuals or households that use goods and services generated within the economy.

Sellers

Individuals or entities that offer products, goods, or services for sale to buyers.

Tax Increase

The act of raising the amount of money government collects from taxes, often to fund public services or reduce budget deficits.