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:

Law Of Demand

The principle that, other things equal, an increase in a product’s price will reduce the quantity of it demanded, and conversely for a decrease in price.

Price-Elasticity Coefficient

A numerical measure of the responsiveness of the quantity demanded or supplied of a good to a change in its price.

Elastic

A term in economics that describes the sensitivity of demand or supply to changes in price or income.

Price Range

The spread between the lowest and highest price at which a product or service is offered in the market.