If a Tariff and an Import Quota Lead to Equivalent

question 156

Multiple Choice

If a tariff and an import quota lead to equivalent increases in the domestic price of steel,then:

• A) The quota results in efficiency reductions but the tariff does not
• B) The tariff results in efficiency reductions but the quota does not
• C) They have different impacts on how much is produced and consumed
• D) They have different impacts on how income is distributed

---

Definitions:

Expectancy Theory

A motivation theory which suggests that an individual's behavior is determined by their expected outcomes and the attractiveness of those outcomes.

Barry Staw

A renowned organizational psychologist known for his work on concepts such as organizational commitment and the escalation of commitment.

Effective Climate

A work or organizational environment that enhances performance and wellbeing among its members.

Organization

An entity comprising multiple people, such as an institution or an association, that has a collective goal and is linked to an external environment.