The Difference Between a Tariff and a Quota Is That

question 24

Multiple Choice

The difference between a tariff and a quota is that

• A) they both collect tax money, but tariffs are more equitable.
• B) they both collect tax money, but quotas are more equitable.
• C) tariffs collect tax money, but quotas do not.
• D) quotas collect tax money, but tariffs do not.

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating the amount contributed toward covering fixed costs and generating profit.

Units Sold

The total number of a product's units that have been sold during a certain period.

Variable Costing

A costing method that includes only variable production costs in the cost of goods sold and treats fixed costs as period expenses.

Production Increase

Production increase refers to the rise in the quantity of products manufactured or services rendered by a company over a specific period, aiming to meet higher demand or improve market share.