A Difference Between a Quota and a Tariff Is That

question 124

Multiple Choice

A difference between a quota and a tariff is that with a quota the

• A) person who has the right to import the good captures an extra gain.
• B) exporting government collects an extra gain in the form of revenue.
• C) importing government collects an extra gain in the form of revenue.
• D) domestic consumers are not harmed.

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Definitions:

Operating Statement

A financial document, also known as an income statement, which shows a company's revenues, expenses, and profits or losses over a specific period.

Gross Margin

A company's total sales revenue minus its cost of goods sold, indicating the financial health and profitability of a product or business.

Direct Labor

Workers or employees who are directly involved in the production of goods or services.

Percentage Markup

The increase in cost price expressed as a percentage of the cost.