The Use of Tariffs and Quotas for Trade Protection Results

question 308

Multiple Choice

The use of tariffs and quotas for trade protection results in

• A)lower prices for domestic consumers.
• B)less revenue for government.
• C)less efficiency in the economy.
• D)less rent-seeking activity.

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Definitions:

General Obligation Bonds

Bonds issued by municipalities that are backed by the full faith and credit of the issuing government, promising to repay the debt with general revenue.

Revenue Bond

A type of municipal bond supported by the revenue from a specific project, such as a toll bridge or highway.

State Income Taxes

Taxes imposed on income by individual states, varying in rates and structures, applicable to income earned by residents and, in some cases, non-residents working in the state.

U.S. Treasury Bonds

Long-term government debt securities issued by the U.S. Department of the Treasury with a maturity of more than ten years, offering periodic interest payments to investors.