If a Tariff and an Import Quota Lead to Equivalent

question 99

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 identical impacts on how much is produced and consumed
• D) They have identical impacts on how income is distributed

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Definitions:

Primary Source

Original materials or evidence directly related to a topic or event being researched or studied.

Energy

The capacity to do work, existing in various forms such as kinetic, thermal, chemical, and potential energies.

Glucose

A simple sugar that is an important energy source in living organisms and a component of many carbohydrates.

Amino Acids

The building blocks of proteins, consisting of a basic amino group, an acidic carboxyl group, and a unique side chain.