A Tariff Has One Distinct Advantage Over a Quota

question 169

True/False

A tariff has one distinct advantage over a quota.It increases tax revenues to the government.

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Definitions:

Price Controls

Government-imposed limits on the prices that can be charged for goods and services in the market.

Misallocation

The inefficient or inappropriate distribution of resources in a manner that does not maximize economic efficiency or output.

Production Cost

The total expense incurred in the manufacture of a product, including raw materials, labor, and overhead costs.

Black Market

Illegal trade of goods and services, beyond government control, where transactions typically occur “under the table” to avoid taxes or regulations.