The Basic Difference in the Economic Effects of a Tariff

question 109

Multiple Choice

The basic difference in the economic effects of a tariff compared with a quota is that a

• A) quota reduces domestic consumption of the product, but a tariff does not.
• B) tariff allows imports to increase if demand increases, whereas a quota does not.
• C) tariff raises product prices, but a quota does not.
• D) quota raises product prices, but a tariff does not.

---

Definitions:

Spiritual Understanding

The recognition and integration of beliefs, practices, and experiences that pertain to the meaning, purpose, and connection with something greater than oneself.

Erik Erikson

A developmental psychologist and psychoanalyst known for his theory on the psychological development of human beings, which outlines eight stages from infancy to adulthood.

Self-Actualization

The process of realizing and fulfilling one's talents and potentialities, considered to be the ultimate goal of personal development.

Abraham Maslow

A psychologist known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.